How much money must you deposit in account each year

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Reference no: EM13848209

You are saving for the college education of your four children. They are one year apart in age; one will begin college in 8 years (Year 8), another in 9 years, another in 10 years and the last one in 11 years. You estimate your children’s college expenses to be $10,000 per year per child, paid at the beginning of each college year (first payment for first child is at Year 8 and so on). The annual interest rate is 6 percent. How much money must you deposit in an account each year to fund your children’s education? You will begin payments one year from today. You will make your last deposit when your oldest child enters college. Also assume that each child will take 4 years to graduate from college.

Reference no: EM13848209

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