A son planned to endow 1000000 to his son on his son's 21st birtthday. How much is his semi-annual deposit in a special account that earns 5% compounded quarterly if the first deposit was made when the son was 4.5 years old?
The answer is 16640.20
I used the future worth of annuity:
F = A( ((1+i)^n - 1) / i) F = 1000000 i = 0.05/4 n = 21-4.5 years = 16.5; 16.5*2 = 33 (semi annual)
I get A = 24667.86 What am I doing wrong?