Your child was just born and you are planning for his/her college education. Based on your...

Your child was just born and you are planning for his/her college education. Based on your wonderful experience in Advanced Finance you decide to send your child to Binghamton University as well. You anticipate the annual tuition to be $50,000 per year for the four years of college. You plan on making equal deposits on your child’s birthday EVERY OTHER YEAR for the ages one through seventeen inclusive to fund his/her education. Assume the first tuition payment is due in exactly 18 years from today and the expected return is 10% over this period.

Calculate the bi-annual deposit.

You only plan on making 3 deposits – the first on your child’s 5^th birthday, second on their 11^th birthday and third on 15^th birthday. Each deposit will be double the previous deposit. Calculate each deposit.

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jeff jeffy answered 1 year ago

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