Question (1) A couple have a 3-year-old child; they decided to make annual deposits into a savings account to fund his 4-year university education. With the first deposit being made on his fourth birthday and the last deposit being made on his 15th birthday. Then, starting on his 18th birthday, 4 withdrawals are required, starting at $x1 and increasing at a rate of 11%. If the effective annual interest rate is x2% during the whole period of time, what are the annual deposits in years 4 through 15?

Question (1) A couple have a 3-year-old child; they decided to make annual deposits into a savings account to fund his 4-year university education. With the first deposit being made on his fourth birthday and the last deposit being made on his 15th birthday. Then, starting on his 18th birthday, 4 withdrawals are required, starting at $x1 and increasing at a rate of 11%. If the effective annual interest rate is x2% during the whole period of time, what are the annual deposits in years 4 through 15?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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