Reference no: EM132969475

Problem 1: Your two children go to college in the future. The first goes to college 10 years from now, and will need $20,000 each year for the four years of college. The second goes to college 15 years from now, and will need $24,000 each year for the four years of college. You wish to make equal, end of year payments between now and the point where your first child goes to college, i.e. 10 years. If the interest rate is assumed to be 10% per year for each of the next 20 years, what must your deposit each year be?