Start a fund to provide for his sons education

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Your brother wants to start a fund to provide for his son's education. He plans to deposit $1,426 at his son's first birthday and then an equal additional deposit every year for 8 years. He wants to have enough in the savings account at the end of that time to provide an annual payment to his son of $2,494 dollars on his son's 18th thru 22nd birthdays. If the interest rate is 4%, what is the required amount of the 8 annual deposits that would meet these requirements?

Reference no: EM13743043

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