Suppose the father has just inherited a large sum of money

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Susan will start attending college in September 2024 at which time she will need $12,000 for the first year of study. Her costs at college for the next three years are estimated at $14,000, $16,000, and $18,000, respectively. Susan’s father plans to make equal payments to a money market fund that yields 6%, the first payment will be in September 2014 and the last in September 2024.

Suppose the father has just inherited a large sum of money. What amount would he have to deposit if he decides to make one lump-sum payment in September 2014.

Reference no: EM131817974

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