How much money must you deposit in an account each year

Reference no: EM132043954

Question: You are saving for the college education of your five children. They are one year apart in age; one will begin college in 10 years (Year 10), another in 11 years, another in 12 years, another in 13 years, and the last one in 14 years. You are planning to at least support them financially (with your personal funds) for the first two years of their college education, and then expect them to get a student loan and or scholarships. You estimate your children's college expenses to be $7,000 per year per child, paid at the beginning of each college year (first payment for first child is at Year 10 and so on). The annual interest rate is 4 percent. How much money must you deposit in an account each year to fund your children's education? You will begin your deposit into the account starting today and the last deposit will be the year before your oldest child enter college.

Reference no: EM132043954

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