How much would you need to save annually at 5% to make four annual college tuition...

 

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How much would you need to save annually at 5% to make four annual college tuition payments of $15,000 beginning in 20 years? Assume annual compounding. Remember that you will be making 4 payments of $15,000 in years 20, 21, 22, and 23. How much would you need to save annually at 5% to make four annual college tuition payments of $15,000 beginning in 20 years? Assume annual compounding. Remember that you will be making 4 payments of $15,000 in years 20, 21, 22, and 23.

Answer rating: 100% (QA)

To calculate the required annual savings amount we can use the future value formula for an annuity F... View the full answer