Question

Harry and Lisa Perry have agreed to pay for their granddaughter’s college education and need to know how much to set aside so annual payments of $25,000 can be made for 5 years at 2% annual interest. Click the icon to view the table.

5 11, 13, 14 20 of 20 (0 complete) ts college i Data Table for five Present Value of a $1.00 Ordinary Annuity Periods 1 3 Ra

TU < 20 of 20 (0 complete) aughters college 0 Data Table for five 9 11 14 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.

Answer: Today they need to set aside $ . (Round to the nearest cent as needed.)

Answer 1

$117,836.49

Explanation:

We can't make heads or tails of your table, so we have used a financial calculator to determine the multiplier is about 4.713. The calculator maintains more significant digits than that, so gives the value to the penny as ...

$117.836.49

_____

This value is about 4.71345951 × $25,000.