Mr Sandstrom's Will Directed That $20,000 Be Placed in Each

question 50

Short Answer

Mr. Sandstrom's will directed that $20,000 be placed in each of two investment trusts for his grandchildren, Lena and Axel. On each grandchild's 18^th birthday, he or she is to receive the first of a series of equal quarterly payments running for 15 years. Lena has just turned 13, and Axel's age is 8 years, 6 months. If the funds earn 9.25% compounded semi-annually, what size of payment will each grandchild receive?

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Definitions:

Cartilaginous Fish

Jawed fish with a skeleton of cartilage; a shark, ray, or skate.

Sharks

Cartilaginous fishes belonging to the subclass Elasmobranchii, known for their sharp teeth and predatory nature, playing a crucial role in maintaining marine ecosystem balance.

Skates

Cartilaginous fishes belonging to the family Rajidae in the superorder Batoidea of rays. More broadly, "skates" can refer to ice or roller skates used in sports and recreation.

Homo Habilis

Extinct hominin; earliest named Homo species; known only from Africa, where it arose 2.3 million years ago.