Question: Construct a model which uses the Compound Interest Tables in the back of the book for the following problem. You are planning for your child's

Construct a model which uses the Compound Interest Tables in the back of the book for the following problem. You are planning for your child's college education. On your child's 18th, 19th, 20th and 21st birthdays, you want to give them $5,000 per year. You plan on depositing $800 into an account starting on their 8th through 17th birthdays. You will need to deposit starting on their 4th through 7th birthdays to build your fund's value. How much should you invest during those years assuming 5% interest rate? Construct a model which uses the Compound Interest Tables in the back of the book for the following problem. You are planning for your child's college education. On your child's 18th, 19th, 20th and 21st birthdays, you want to give them $5,000 per year. You plan on depositing $800 into an account starting on their 8th through 17th birthdays. You will need to deposit starting on their 4th through 7th birthdays to build your fund's value. How much should you invest during those years assuming 5% interest rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
