22 Jul HOW MUCH MONEY MUST YOU DEPOSIT IN AN ACCOUNT EACH YEAR TO FUND YOUR CHILDRENS EDUCATION?
You are saving for the college education of your two children. They are two years apart in age; one Show more You are saving for the college education of your two children. They are two years apart in age; one will begin college in 7 years and another in 10 years. You estimate your first childs college expenses to be $30000 per year paid at the beginning of each college year (first payment is at year 7 and so on). You estimate your second childs college expenses to be $50000 per year paid at the beginning of each college year (first payment at year 10 and so on). The annual interest rate is 8 percent. How much money must you deposit in an account each year to fund your childrens education? You will begin payments one year from today. You will make your last deposit when your oldest child enters college. Also assume that each child will take 4 years to graduate from college. Show less
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