
Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Document containing solved mathematics
Typology: Exercises
1 / 1
This page cannot be seen from the preview
Don't miss anything!
Powered by Skippy
Click Here (https://www.chegg.com/homework-help/questions-and-answers/father-decides- establish-savings-account-child-s-college-education-first-birthday-son-mone-q117349933)
To calculate the required annual deposit A, we can use the formula for the future value of an annuity. Future Value = Where: A = Annual Deposit r = Interest Rate per period n = Number of periods
In this case, the interest rate is 10% per year, compounded annually. The number of periods is 18 (from the 2nd birthday to the 19th birthday).
Using the formula, we can set up the equation:
Now we can solve for A: A=548.
Therefore, the required annual deposit A is approximately $548.