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What is the (constant) annual payment needed to fund an educational lump sum of $78,342 given the child is currently 8 years old and will
What is the (constant) annual payment needed to fund an educational lump sum of $78,342 given the child is currently 8 years old and will be attending college at age 18, if the parents start investing now (payments at the beginning of each year), and continue until the beginning of the freshman year, and the annual investment return is 8%?
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This is a problem of present value of an annuity where the future value of a series of equal payments made at equal intervals of time is calculated In this case we need to find the annual payment ...
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
