New parents wish to save for their newborn's education and wish to have $49,000 at the end of 17 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 6.5% compounded annually? (Round your answers to two decimal places.) $ 1661.41 How much interest would they earn over the life of the account? $ 20756.03 Determine the value of the fund after 8 years. $ 16741.79 How much interest was earned during the 8th year? $ 13491.42
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5% compounded annually. Using the formula for compound interest: $49,000 = P(1 + r)^n $49,000 = P(1 + 0.065)^17 $49,000 = P(2.013) P = $49,000 / 2.013 P ≈ $24,331.49 Therefore, the parents should place approximately $24,331.49 at the end of each year into the Show more…
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