A grandmother wants to provide an annuity of $2500 payable at the end of every six months
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A grandmother wants to provide an annuity of $2500 payable at the end of every six months during the three years that her grandson attends college. What single deposit must she make today that will finance the annuity, if the grandson will start college in 15 years? Assume she can invest the money at 2.85% compounded semiannually for the first seven years, and then at 3.0% compounded semi-annually for the next 11 years.
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The single deposit that the grandmother must make today in order to finance the annuity is 5094525 T...View the full answer
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Related Book For 
Contemporary Business Mathematics With Canadian Applications
ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
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