A) Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.6%, compounded quarterly, for a period of 4 years. How much is in the account after the 4 years? (Round your answer to the nearest cent.) B)After the 4 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 4 years in the account and continue to contribute $200 at the end of each quarter for the next 18.5 years, how much will they have in the account (to help with their child's college expenses)? (Round your answer to the nearest cent.)
A) Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.6%, compounded quarterly, for a period of 4 years. How much is in the account after the 4 years? (Round your answer to the nearest cent.) B)After the 4 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 4 years in the account and continue to contribute $200 at the end of each quarter for the next 18.5 years, how much will they have in the account (to help with their child's college expenses)? (Round your answer to the nearest cent.)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 16PROB
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A) Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.6%, compounded quarterly, for a period of 4 years. How much is in the account after the 4 years? (Round your answer to the nearest cent.)
B)After the 4 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 4 years in the account and continue to contribute $200 at the end of each quarter for the next 18.5 years, how much will they have in the account (to help with their child's college expenses)? (Round your answer to the nearest cent.)
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