How much money must they deposit today

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Reference no: EM132008802

You have been accepted to study at the London School of Economics in England. You will need $25,000 every 6 months for the next four years to cover tution and living expenses. Mom and Dad have agreed to pay for your education and they want to make one single deposit today in an account earning an annual rate of 9%, compounded semi-annually. How much money must they deposit today so that you can withdraw $25,000 at end of each semester over the next 4 years?

Reference no: EM132008802

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