You decide to create a college fund for your 5-year-old child, with an interest rate of...

You decide to create a college fund for your 5-year-old child, with an interest rate of 6% compounded quarterly. Deposits will be made every month until the child is 18. First withdrawal will be at age 20. College expenses are estimated to be $30,000/year in today’s dollars for 4 years, starting at age 20. The inflation rate is 5%/year. Find the amount of monthly deposits in actual dollars.

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Rahul Sunny answered 1 week ago

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