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Jack and Jill Johnson are preparing for their son, Josh's (age 8), future education. They anticipate that Josh will start college at age 18 and
Jack and Jill Johnson are preparing for their son, Josh's (age 8), future education. They anticipate that Josh will start college at age 18 and pursue a 4-year degree. College education costs are currently $25,000 per year, and the Johnsons expect these costs to increase annually at a rate of 6 percent. The Johnsons can invest their money to earn an after-tax annual return of 9 percent. How much should the Johnsons deposit at the end of each year to fund Josh's college education? The last deposit will be made when Josh turns 18
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