You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $45,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.5 percent. How much money must you deposit in an account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college.
You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $45,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.5 percent. How much money must you deposit in an account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 37P
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You are saving for the college education of your two children. They are
two years apart in age; one will begin college 15 years from today and the other
will begin 17 years from today. You estimate your children’s college expenses to be
$45,000 per year per child, payable at the beginning of each school year. The annual
interest rate is 7.5 percent. How much money must you deposit in an account each
year to fund your children’s education? Your deposits begin one year from today.
You will make your last deposit when your oldest child enters college. Assume four
years of college.
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