- Jeannine Just Had A Baby Girl She Is Planning To Save Money For Her Daughter S College Expenses Years Until The Colleg 1 (187.91 KiB) Viewed 31 times
Jeannine just had a baby girl. She is planning to save money for her daughter's college expenses. Years until the college starts is 18 Amount to withdraw each year in college study $ 24,000.00 Years to withdraw in the college study/ college study years IS 4 Interest rate 2% Because Jeannine is planning ahead, the first withdrawal will take place when her daughter starts college. She wants to make equal annual deposits into her account for her daughter's fund. a. What is the amount she will need when the college year starts? b. If she starts making these deposits in 1 year and makes her last deposit on the year before her daughter starts college, what amount must she deposit annually to be able to make the desired withdrawals at the college year? c. Suppose her friend Michelle has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump sum deposit today to cover her daughter's college needs. What amount does she have to deposit today?