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Suppose that Evelyn's parents want to have $160,000 saved for college by her eighteenth birthday. They will save

the same amount every year from her 1st birthday to her 18th birthday (their last saving is on her 18th birthday). The rate of return on their saving is 8% per year on.

How much would they have to save each year to reach their goal?

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future value of an annuity= P[(1+r)^n-1]/r r=8% n=18 [(1+r)^n-1]/r=... View the full answer

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