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Question - Thomas set up a savings fund for his son's education so that he would be able to withdraw $1,600 at the beginning of every month for the next 9 years. The fund earns 4.44% compounded quarterly.
Required -
a. What amount should he deposit today to allow for the $1,600 periodic withdrawals?
a. $100,388.60
b. $142,332.64
c. $142,857.33
d. $101,502.91
b. How much interest would he earn in this investment?
a. $142,857.33
b. $29,942.67
c. $172,800.00
d. $30,467.36
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