The Smiths wish to save for their son Sammy's university education. Sammy was just born today. They predict that Sammy will need $25,000 each year for 4 years, with the first payment on Sammy's 19th birthday. The Smiths plan to make 18 deposits into an account, one on each of Sammy's birthdays. 

How large do these deposits need to be?

Answer rating: 100% (QA)

To determine the size of the deposits the Smiths need to make we can use a concept called present va... View the full answer