On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw $5000 per year for five years. If the first withdrawal will be on the child's 18th birthday, how much should the parent deposit. The rate is 5% annually. $21,647.38 $8994.93 $9916.91 $9444.68
On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw $5000 per year for five years. If the first withdrawal will be on the child's 18th birthday, how much should the parent deposit. The rate is 5% annually. $21,647.38 $8994.93 $9916.91 $9444.68
Chapter13: Investment Fundamentals
Section: Chapter Questions
Problem 2DTM
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On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw $5000 per year for five years. If the first withdrawal will be on the child's 18th birthday, how much should the parent deposit? The rate is 5% annually.
![On a child's first birthday, a parent wishes to
deposit enough money so that the child can
withdraw $5000 per year for five years. If
the first withdrawal will be on the child's
18th birthday, how much should the parent
deposit. The rate is 5% annually.
$21,647.38
$8994.93
$9916.91
$9444.68](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85fa6a87-faab-410a-93cc-d59cacbf2f10%2F2ab854e9-0032-415d-957a-996a7bdd4834%2Fsc2r1lt_processed.png&w=3840&q=75)
Transcribed Image Text:On a child's first birthday, a parent wishes to
deposit enough money so that the child can
withdraw $5000 per year for five years. If
the first withdrawal will be on the child's
18th birthday, how much should the parent
deposit. The rate is 5% annually.
$21,647.38
$8994.93
$9916.91
$9444.68
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