You are the parent of a 4-year-old girl and plan to being saving next year on...

 

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You are the parent of a 4-year-old girl and plan to being saving next year on her 5th birthday (on September 2, 2008) for her college education. You wish to provide $15000 per year for 4 years beginning when she is 18. How much money in 13 equal annual installments must be invested each year until she is 17 (September 2, 2020) to meet this goal if you earn 9% on your investment? You are the parent of a 4-year-old girl and plan to being saving next year on her 5th birthday (on September 2, 2008) for her college education. You wish to provide $15000 per year for 4 years beginning when she is 18. How much money in 13 equal annual installments must be invested each year until she is 17 (September 2, 2020) to meet this goal if you earn 9% on your investment?

Answer rating: 100% (QA)

To determine the amount of money that needs to be invested each year we can use the concept of prese... View the full answer