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How much interest would he earn in this investment

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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

Reference no: EM133024288

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