Reference no: EM131955509

On the day that little Andy Assadollahi is born, his father a highscool and college alumnus decides to begin saving money to send his son to the same highschool. The father makes an initial deposit of $5,000 into the account. The account pays interest at 6% per year. On Andy’s third birthday, his dad deposits $3,000 into the account and he will increase the amount of the deposit by a certain amount per year for the next seven years. Unfortunately, twelve years from now, Andy gets into some trouble at his grade school and his dad has to withdraw $4,000 from the account to pay for damages to the boy’s restroom. Andy will begin high school when he is fourteen and will graduate when he is seventeen. The cost of tuition and other fees at the highschool will be $14,680 in his freshmen year. The cost of tuition is expected to increase by 4% per year for the next three years. Compute the increase in the amount of the deposit per year for the years four through year ten that the proud papa must make in order to pay Andy’s high school tuition and fees over his four years of high school. Show all of your work.