1 2 3. 4 5. 6 7 B 9 0 1 2 DISCOUNT RATE A financial planning service offers a unique program for parents to save for a child's college education. Starting on the child's 12th birthday, annual deposits are made. The first deposit is $5,000 and the required deposit increases by $1000 each year, until the child's 18th birthday, when the final deposit is made. Beginning on the child's 19th birthday, four annual withdrawals of $10,000 can be made. Assuming today is your child's 12th birthday, and assuming that you expect to earn a 6% annual return on your investments, analyze the proposed investment, and answer the questions below. Type your responses into the yellow boxes. 3 AGE (ON BIRTHDAY) DEPOSIT AMOUNT PRESENT VALUE AS OF 12TH BIRTHDAY 4 5 12 13 6 14 7 15 8 16 9 17 20 18 1 19 22 20 3 21 24 22 25 Total 26 WITHDRAWAL AMOUNT PRESENT VALUE AS OF 12TH BIRTHDAY