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Nancy just had a new baby boy and plans to send him to college 19 years from now. She wants to deposit each winter in an education account which pays 10% (compounded annually) so that her boy will have enough money set aside that he can take out $20,000 at the beginning of each year to pay tuition, room and board, etc., for each of his four-year education. How much will Nancy need to deposit at the end of each year in order to meet the goal? (Note: There will be 19 total deposits and the first deposit will be made in one year. Also, the last deposit will be made the day before the first withdrawal.)

User Chevaughn
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1 Answer

6 votes

Answer:

$1363.14

Step-by-step explanation:

Please see attachment

Nancy just had a new baby boy and plans to send him to college 19 years from now. She-example-1
User Quarra
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