A father decides to establish a savings account for his


A father decides to establish a savings account for his child’s college education on the day his baby is born. Any money put into the account will earn an interest rate of 8% compounded annually. The father will make a series of annual deposits in equal amounts from the first birthday through the 18th, so that the child can make four annual withdrawals from the account in the amount of $20,000 on each of his 18th, 19th, 20th, and 21st birthdays. Assuming that the first withdrawal will be made on the child’s 18th birthday, calculate the required annual deposit.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: A father decides to establish a savings account for his
Reference No:- TGS01632805

Expected delivery within 24 Hours