Problem
A father wants to set up a bank account that will pay his daughter $18,000 at the end-of-quarter (EOQ) 4 and $32,000 at EOQ 8. He will fund this account by making quarterly payments of $X from the present (time zero) through EOQ 7.
a. Draw a cash-flow diagram from the father's viewpoint.
b. If the quarterly percentage rate is 2%, what is the value $X that must be deposited into the account?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.