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 - When Curtis was born, his parents began depositing $1000 at the end of ...
- math - The Derr-McGee Manufacturing Company plans to build a new $50,000 ...
- Finance - shley is planning to attend college when she graduates from high ...
- Finance - Mr Joe is trying to plan for retirement in 10 years, and currently he ...
- Math - When Curtis was born, his parents began depositing $1000 at the end of ...
- math - As compared to its first year of operation, ABC company grew 8% in the ...
- accounting - Would like to start a college fund. It was estimated that the cost ...

More Related Questions