A couple is planning to finance its three-year-old sons college education. The couple can deposit money at 12%

compounded quarterly. What quarterly deposit must be made from the sons 3rd birthday to his 18th birthday in

order to provide $30,000 on each birthday from the 18th to 21st? (Note that the last deposit is made on the day of first withdrawal.)

ANSWER :

A = $621.76 per quarter must be deposit.

Please do not use excel functions when showing the steps.