Zaheer has been diligently saving for his son Zameer's university education. At present, Zameer is 5 years old, and he anticipated to start university at the age of 18. The current university fees stand at Rs 200,000 per semester, wise, he expected annual increase of 5%. Zahoor anticipates that armer should complete his degree within 4 years; otherwise, he will be responsible for the additional costs. The university requires payment at the start of each semester. Presently, Zahoor has Rs. 250,000 in his savings account. He intends to add an extra Rs. 100,000 each year for the next years, Following this period, he plans is savviness Acoma. He in contribution until Ameer's untersit nerole of the equal annuals his savings account to yield a 15% interest. 

To cover the university expenses, what must be the size of the equal annual contributions towards the end of savings period?

Answer rating: 100% (QA)

To calculate the size of the equal annual contributions needed to cover the university expenses we can break down the problem into several steps Step ... View the full answer