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You want to deposit enough money in a bank account for your sons education. You estimate that he will need $7,000 per year for four
You want to deposit enough money in a bank account for your sons education. You estimate that he will need $7,000 per year for four years, starting on his 18th birthday. Today is his first birthday. If you earn 10% interest, how much lump sum should you deposit in the bank today to provide for his education?
| a. | $3,538.33 | |
| b. | $3,963.27 | |
| c. | $2,298.41 | |
| d. | $4,828.39 |
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