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help please asap Your sister and her partner just had a baby! Your parents would like to start saving so that they can help pay
help please asap
Your sister and her partner just had a baby! Your parents would like to start saving so that they can help pay for their grandchild's college. They would like to save enough so that the new grandchild will have $27.265 each year of college for four (4) years. They expect the new grandchild to begin college at the beginning of their 18th year from now, end of year 17. The grandchild will need to withdraw $27.265 at the beginning of each year. However you are still in college and they want to help you finish so they will wait 2 years before making deposits into a savings account (the fust payment will be made at the end of year 3 and the last payment will be made on their 16th birthday. end of year 16). What uniform annual deposit do your parents need to put into a savings account that earns 3.74% annual interest so that their grandchild will have $27,265 available at beginning of each year of college? Margin of error +/- $100 Hint: Since the account will earn interest while pulling from it you will need to move the 4 years of college payments to one lump sum at the end of year 17 (which is the beginning of year 18) Step by Step Solution
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