Question
Q2. Robert and Sarahs son just turned five years old. He is showing promising academic aptitude in kindergarten. They want to begin planning for their
Q2. Robert and Sarahs son just turned five years old. He is showing promising academic aptitude in kindergarten. They want to begin planning for their childs college education. In 13 years, they wish to have accumulated enough money to pay tuition costs of $200,000 per year for four years. That is, Robert and Sarah want to accumulate enough money to receive an annuity of $200,000 for four years 13 years from now. During the next 13 years, Robert and Sarah can earn 3 percent annually, while after 13 years they can earn 10 percent annually. What annual contributions to the education fund will allow Robert and Sarah to receive the $200,000 annuity? Show your work. Use the computational methods described in the lesson videos. Do not use Excel formulas.
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