Fall07:Stephen has learned that his great-aunt (see Problem 18) intends to give him $4,000 each year

Stephen has
learned that his great-aunt(see Problem 18) intends to give him $4,000
each year he is studying at university. Tuition must be paid in advance, so
Stephen would like to receive his payments at the beginning of each school
year. How much will his great-aunt have to invest today at 7 percent, to make
the four annual (start-of-year) payments?
Topic: Annuities Due
Level of difficulty: Medium