Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer this question. You are 40 years old and want to set aside enough money so that you can help pay for your kids

image text in transcribedplease answer this question.

You are 40 years old and want to set aside enough money so that you can help pay for your kids college. You make an annual deposit at the beginning of each year for the next 7 years into a retirement account and it is expected to grow at 10% per year. When your first child goes to college in year 8 you will need to withdrawal $18,000 annually...out-of-state tuition. In year 10 your second child will go to college, but she decides to stay in-state and your withdrawals will total $25,000 per year for both kids when they are in school at the same time. You are only paying for a 4 year degree. Your account balance continues to grow at 10% per year. How much do you need to deposit annually in the account for 7 years to have enough to pay for college

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing For Financial Advisors

Authors: Eric Bradlow, Keith Niedermeier, Patti Williams

1st Edition

0071605142, 978-0071605144

More Books

Students also viewed these Finance questions

Question

Evaluate the impact of unions on nurses and physicians.

Answered: 1 week ago

Question

Describe the impact of strikes on patient care.

Answered: 1 week ago

Question

Evaluate long-term care insurance.

Answered: 1 week ago