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You want to bank enough money to pay for 4 years of college at $20,000 per year for your child. The savings account will pay an effective rate of 5% per year. The first annual payment for tuition and for room and board is made on your child’s 17th birthday. If you deposit the money on your child’s 3rd birthday, how much must you deposit? Click here to get an A+ paper at a Discount

You want to bank enough money to pay for 4 years of college at $20,000 per year for your child. The savings account will pay an effective rate of 5% per year. The first annual payment for tuition and for room and board is made on your child’s 17th birthday. If you deposit the money on your child’s 3rd birthday, how much must you deposit?
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