Question
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 10%. The parents deposit $2000 on their daughter's first birthday and plan to increase the size of their deposits by 5% each year. What will be the amount available for the daughter's college expenses on her 18th birthday?
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