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Henry Spencer is interested in saving money to put his son, Shawn, through college. Shawn is turning 10 years old today, and Henry wants to
Henry Spencer is interested in saving money to put his son, Shawn, through college. Shawn is turning 10 years old today, and Henry wants to be able to deposit an equal amount into a savings account each birthday until Shawn turns 21. He wants the deposits to be just large enough to pay for all 4 years of Shawn's education, and he plans to make the first deposit in a year. You can assume that tuition payments will be made on Shawn's 18 th through 21 st birthdays. You can also assume that the current cost of tuition is $39,000 a year, and that the cost will increase by 3.5% per year. If Henry is able to earn 4.5% a year in his account, how much should he deposit in the acount each year? (20 points total)
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