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Grandparents plan to open an account on their grandchild's birthday and contribute each month until she...

Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 7%, compounded monthly, if they want the balance to be $160,000 at the end of 18 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

b Solve the problem. (Round your answer to the nearest cent.)

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