Contribute assuming equal contributions

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Reference no: EM131980618

Parents wish to accumulate $50,000 at the end of 20 years for a college fund for their child. They contribute once at the end of each year. Assuming the fund earns a fixed effective interest rate of 7% annually, answer the following questions:

(a) How much do they need to contribute assuming equal contributions.

(b) If they contribute 1000$ for the first 10 years, and X for the remaining 10 years, find the value of X.

Reference no: EM131980618

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