Your daughter will go to college at the end of 5-years from now. The 4-year of...

Transcribed Image Text:

Your daughter will go to college at the end of 5-years from now. The 4-year of college studies will cost $60,000 a year. The yearly college bills are payable at the beginning of each year. You opened a savings account that pays 8.0% per year interest. 1. How much lump sum money should you deposit at the end of the 5th year to pay for her entire 4-year of college expenses. You will not be depositing any more money after the 5th year when she starts college. How much should you deposit at the end of each year for the next 5 years to accumulate enough money (answer to Q#1) to support the 4-year college expenses? Your daughter will go to college at the end of 5-years from now. The 4-year of college studies will cost $60,000 a year. The yearly college bills are payable at the beginning of each year. You opened a savings account that pays 8.0% per year interest. 1. How much lump sum money should you deposit at the end of the 5th year to pay for her entire 4-year of college expenses. You will not be depositing any more money after the 5th year when she starts college. How much should you deposit at the end of each year for the next 5 years to accumulate enough money (answer to Q#1) to support the 4-year college expenses?

Answer rating: 100% (QA)

Given that The PMT College fee 60000 The Nper 4 years The Rate 8 The FV 0 The lum... View the full answer