Calculate the required months deposit amount

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Question - Using Engineering Economy principles

The parent's of 5-YEAR OLD GIRL WANT to save money for college tuition when she grows up by making monthly deposits in a savings account which pays 8% compounded quarterly. The parents will start making deposits on their daughter's 5th birthday until her 22nd birthday when she graduates from college. The tuition is estimated to cost $40000 per year over 4 years, paid annually starting when the daughter enters college on her 18th birthday.

(a) Calculate the required months deposit amount.

(b) Calculate the balance of the savings account "Bn" and the interest earned "In" at the daughter's 18th birthday.

Reference no: EM132179827

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