Question: Practice Problem 2 Your parents start saving for your sister's college education. She will begin college at the age of 1 8 and will need

Practice Problem

2

Your parents start saving for your sister's college education. She will begin college at the age of

18

and will need $

4, 000

per year at the end of each of the following four years she stays in college. Tuitions are paid after starting college. They will start to make a deposit one year from today in an account which pays

6 %

compounded annually and they continue making an identical deposit until the year your sister starts college. If a deposit of $

1, 987

will allow them to reach their goal, how old is your sister?

Practice Problem 2 Your parents start saving for your sister's college

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