How much did johns parents allow him to withdraw from the


John’s parents started a college fund earning 8% (compounded annually) on the day he was born in1990 (time 0, when John was born). They deposited $1,500 on his birthday each year until he turned 5, after that they began depositing $4,000 annually until he turned 18. When he was 16 he wanted to buy a car. Knowing that John’s college fund would need a balance of at least $100,000 when he started college, at the age of 18, how much did John’s parents allow him to withdraw from the fund to purchase his car?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: How much did johns parents allow him to withdraw from the
Reference No:- TGS02827413

Expected delivery within 24 Hours