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In: Advanced Math

Collin and Devonte plan to send their son to university. To pay for this they will...

Collin and Devonte plan to send their son to university. To pay for this they will contribute equal monthly payments to an account bearing interest at an annual rate of 6.7%, compounded monthly. They will make these payments for 12 years.  Five years after their last contribution, they will begin the first of 60 monthly withdrawals of $3,830 to pay the university's installment bills. How large must their monthly contributions be?

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Since the answer contains calculations, I am providing clear handwritten solution.

[Hope this helps you. ask in the comments if you need any more clarifications or details, I will be happy to help. Since this ques contains quite some computations please let me know if there is any silly mistake. Inform me rather than downvoting. Thank You]

Colby Messinger answered 2 years ago
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