Posted by Vanessa on Friday, December 16, 2011 at 5:25pm.
College is expected to cost $150,000 per year in 18 years, how much should you begin depositing annually at the end of each year to accumulate enough funds to pay the first years tuition at the beginning of the 19th year? earning 6% annual rate of return of the investment

math  drwls, Friday, December 16, 2011 at 7:03pm
150,000 = A*[1.06)^18 1]/0.06
Where A is the required annual contribution, made n = 18 times.
150,000 = A*30.906
A = $4853.48

math  tom, Sunday, December 18, 2011 at 11:51pm
For tax purposes, business frequently depreciate equipment.
Answer This Question
Related Questions
 time value  For the last 19 years, Mary has been depositing $500 in her savings...
 math  Jeanette wishes to retire in 30 years at age 55 with retirement savings ...
 finance  Anne is planning to attend college when she graduates from high school...
 math  The DerrMcGee Manufacturing Company plans to build a new $50,000 ...
 Math  Tuition for one year at a state university is about $13,000. Devon would ...
 Finance  shley is planning to attend college when she graduates from high ...
 Finance  You plan on depositing $10,000 at the end of each year for 30 years ...
 Finance  You plan to start an elite 2 year MBA program on September 1, 2015. ...
 Math  When Curtis was born, his parents began depositing $1000 at the end of ...
 math  You need $28,974 at the end of 10 years, and your only investment outlet ...
More Related Questions