To determine: The each years amount of deposits for person X’s children.
Explanation of Solution
The computation of
Hence, the present value of college expense is $177,405.18.
The computation of oldest child’s expenses at present is as follows:
Hence, the oldest child’s expenses at present is $51,742.73
The computation of expenses of youngest child at present is as follows:
Hence, the youngest child’s expenses at present is $43,391.44.
The computation of total college expenses is as follows:
Hence, the total college expense is $95,134.17.
The computation of current value of annual savings is as follows:
Hence, the current value of annual savings is $11,941.94.
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Chapter 4 Solutions
Corporate Finance: Core Principles and Applications (Mcgraw-hill Education Series in Finance, Insurance, and Real Estate)
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