Question

Mr. Rich E. Creasis, an elderly alumni of SU, has been thinking about establishing a trust fund for his

          granddaughter’s SU tuition. He plans to make equal, annual payments, a year from today, into an account

          that will yield 4 percent per year. If he makes eight payments, how much will each have to be so that his

          granddaughter will have $40,000 to begin her SU studies in eight years? [Hint: Is this an end of period or

          beginning of period problem?]

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

He plans to make equal, annual payments, a year from today, into an account : So it is ordinary annuity, so end of period problem