Saving for College You have just had your first child and want to fund her...
50.1K
Verified Solution
Link Copied!
Question
Finance
Saving for College You have just had your first child and want to fund her college education. You anticipate that she will start college in 18 years. You estimate by then you will need $50,000 a year to cover her tuition at Northeastern, and the associated expenses. You are hoping your daughter will only take five years to complete her education. You therefore are planning on having to provide $25,000 every six months for five years beginning 18 years from today. You cannot afford to start saving today, but will begin making yearly deposits 5 years from now, with you last deposit being the year before the first withdrawal of $25,000. The appropriate discount rate is 8% compounded monthly. How much do you need to deposit each year
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
