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Your parents start saving for your sisters college education. She is 12 years old and will begin college when she turns 18. She will need
Your parents start saving for your sisters college education. She is 12 years old and will begin college when she turns 18. She will need $5000 at that time and at the end of each of the following 3 years. They will make a deposit at the end of this year in an account which pays 5 percent APR, and an identical deposit at the end of each year with the last deposit occurring when she turns 18. What is the required annual deposit which will allow them to reach their goal?
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