A couple with a newborn son wants to save for their child's college expenses in advance. The couple can establ a college fund that pays 8% annual interest. Assuming that the child enters college at age 18, the parents estim that an amount of $50,000 per year will be required to support the child's college expenses for four years. Determine the equal annual amounts that the couple must save until they send their child to college. (Assu that the first deposit will be made on the child's first birthday and the last deposit on the child's 18th birthd The first withdraw will be made at the beginning of the freshman year, which also is the child's 18th birthday.) O $4,775.80 O $6,016.13 O 6,138.52 O $4,609.37

A couple with a newborn son wants to save for their child's college expenses in advance. The couple can establ a college fund that pays 8% annual interest. Assuming that the child enters college at age 18, the parents estim that an amount of $50,000 per year will be required to support the child's college expenses for four years. Determine the equal annual amounts that the couple must save until they send their child to college. (Assu that the first deposit will be made on the child's first birthday and the last deposit on the child's 18th birthd The first withdraw will be made at the beginning of the freshman year, which also is the child's 18th birthday.) O $4,775.80 O $6,016.13 O 6,138.52 O $4,609.37

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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