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You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 30 years in the amount of $77,063.24 and grow by 8% per year. Assuming a discount rate of 6%. You start saving in one year from now a fixed amount for 11 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $ 38,000.

You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 30 years in the amount of $77,063.24 and grow by 8% per year. Assuming a discount rate of 6%. You start saving in one year from now a fixed amount for 11 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $ 38,000.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 30 years in the amount of $77,063.24 and grow by 8% per year. Assuming a discount rate of 6%. You start saving in one year from now a fixed amount for 11 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $ 38,000.
Transcribed Image Text:You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 30 years in the amount of $77,063.24 and grow by 8% per year. Assuming a discount rate of 6%. You start saving in one year from now a fixed amount for 11 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $ 38,000.
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