You decide to set up a college fund for your 10-year-old child and plan to make...

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You decide to set up a college fund for your 10-year-old child and plan to make annual deposits into the account each year on your child's birthday. Because "other things" consistently use more of your money than anticipated, your deposits are actually somewhat erratic. One year even resulted in a withdrawal. The account earns 5% per year. Birthday Deposit Birthday Deposit 10 $1,000 15 $3,000 11 $1,000 16 $2,500 12 $2,000 17 $2,000 $1,500 18 13 $2,000 14 -$1,500 a. How much is in the account immediately after the deposit on your child's 18th birthday? b. How much would you have needed to deposit on each birthday to accumulate the same total if you had started on your child's 10th birthday and made equal annual deposits with no withdrawals? c. How much would you have needed to deposit on each birthday to accumulate the same total if you had started on your child's 1st birthday and made equal annual deposits with no withdrawals? You decide to set up a college fund for your 10-year-old child and plan to make annual deposits into the account each year on your child's birthday. Because "other things" consistently use more of your money than anticipated, your deposits are actually somewhat erratic. One year even resulted in a withdrawal. The account earns 5% per year. Birthday Deposit Birthday Deposit 10 $1,000 15 $3,000 11 $1,000 16 $2,500 12 $2,000 17 $2,000 $1,500 18 13 $2,000 14 -$1,500 a. How much is in the account immediately after the deposit on your child's 18th birthday? b. How much would you have needed to deposit on each birthday to accumulate the same total if you had started on your child's 10th birthday and made equal annual deposits with no withdrawals? c. How much would you have needed to deposit on each birthday to accumulate the same total if you had started on your child's 1st birthday and made equal annual deposits with no withdrawals?

Answer rating: 100% (QA)

a Immediately after the deposit on the 18th birthday the total amount in the account is Initial depo... View the full answer