Question: Amortization Question: The Patchmans have decided to invest in a college fund for their young son. They invested $40,000 in a deferred annuity that will

Amortization Question:

The Patchmans have decided to invest in a college fund for their young son. They invested $40,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.50% compounded monthly and the annuity payments are deferred for 12 years, what will be the size of the monthly payments? (Round to the nearest cent)

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