Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE HELP Congratulations! Today your first child was born - a daughter. The second thought in your head after her birth was that now you
PLEASE HELP
Congratulations! Today your first child was born - a daughter. The second thought in your head after her birth was that now you must save for college expenses. You would like to be able to afford to send her to college by her 18th birthday. College is expected to cost $21,000;$23,000;$27,000; 29,000 for each of her four years of school respectively. You want these amounts to be available to her on her 18th-21st birthdays respectively ( $21,000 withdrawn on her 18th birthday, etc.) In addition, you want to give her a $25,000 graduation gift on her 22nd birthday so that she can get a good start on her career. You currently have $3000 to meet these obligations. You want to save an equal amount at the end of each of the next 22 years to meet the remaining obligations. How much must you save at the end of the each of the next 22 years so that you can meet these obligations? Assume your investments will earn 7.2% annually, and ignore taxes Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started