Jessica has a daughter who just turned 8. Jessica would like to set up an education account for her. She plans to save each year for the next 10 years and the first investment will be made in one year. The money in the education account earns 12%, compounded annually. It is expected that her daughter needs $20,000 per year for 4 years to finish her college. The first withdraw will take place when she turns 18. How much should Jessica save each year in next 10 years?

Answer rating: 100% (QA)

To determine how much Jessica should save each year for the next 10 years to cover her daughters col... View the full answer