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Question - The very day Jayne Adams was born, her parents decided to save for her four-college education. They estimated she will enter college when she is 18 and she will need $25,000 to cover all her expenses for the first year. She will need $32,000 in the second year, $39,000 in the third year and $46,000 in her final year. They negotiated with their bank and were promised an interest rate of 7% per year.
How much money should they invest in this fund on Jaynes first birthday (a year after her birth) to accumulate enough money to cover the estimated college expenses?
After being told of how much they should put in the fund from above to fund Jayne's education, the Adams decided to take a different approach by making a uniform annual deposit from Jaynes first birthday through her seventeenth birthday. How much should they put in the fund each year to cover the estimated costs?
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How would Reha record these transactions in the general journals for these accounts? Why does she need to keep separate general journals for each account
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