You just have a baby. You name him Bob. You immediately start plan for Bob's college finances by opening a savings account. You will begin saving by making annual deposit starting in a year (starting t=1) with the last deposit being made when Bob is in senior year (t = 21). Your parents (Bob's grandparents) help out by giving a gift of $10,000 to the college fund when Bob turns 10 (t-10). Once starting college, Bob may need to withdraw $25,000/year to cover tuition and other costs (from t = 18 to t = 21). If the college fund will pay you 5% interest per year and there is no money left in the account after paying for Bob's last year (t = 21), how much do you need to deposit every year?

You just have a baby. You name him Bob. You immediately start plan for Bob's college finances by opening a savings account. You will begin saving by making annual deposit starting in a year (starting t=1 ) with the last deposit being made when Bob is in senior year (t=21). Your parents (Bob's grandparents) help out by giving a gift of $10,000 to the college fund when Bob turns 10(t=10). Once starting college, Bob may need to withdraw $25,000 /year to cover tuition and other costs (from t=18 to t =21 ). If the college fund will pay you 5% interest per year and there is no money left in the account after paying for Bob's last year (t=21), how much do you need to deposit every year