A couple is saving for their newborn daughter’s college education. She will need $25,000 per year for a four-year college program, which she will start when she is 18. What uniform deposits starting 2 years from now and continuing through year 17 are needed, if the account earns interest at 4%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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A couple is saving for their newborn daughter’s college education. She will need $25,000 per year for a four-year college program, which she will start when she is 18. What uniform deposits starting 2 years from now and continuing through year 17 are needed, if the account earns interest at 4%?

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