Today is your birthday, and you decide to start saving for your college educatio

Question

Today is your birthday, and you decide to start saving for your college education. You will begin college on your 18th birthday and will need $4000 per year at the END of each of the following 4 years. You will make a deposit 1 year from today in an account paying 12 percent annually and continue to make an identical deposit each year up to and including the year you begin college. If a deposit amount of $2,542.05 will allow you to reach you goal, what birthday are you celebrating today? What steps would you use to solve this problem?

Explanation / Answer

Ans;

Given required value that will be earned at the end of 4 years $4000

it is given that identical deposit each year up to and including the year begining college therefore

it includes the 18 th year so back 3year so present age is 15years

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