Saving for college education

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Reference no: EM131968757

Your parents start saving for your sister's college education. She will begin college when she turns 18 and will need $50,000 at that time and on each of her following 3 birthdays. They will make a deposit at the end of this year in an account which pays 10 percent compounded annually and an identical deposit at the end of each year with the last deposit occurring when she turns 18. If an annual deposit of $22,922 will allow them to reach their goal, how old is your sister now?

Reference no: EM131968757

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