A professor has two daughters that he hopes will one day go to college. Currentl

Question

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $22,795.00 per year (all expenses included). Tuition will increase by 4.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, about 9.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.) Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here... Submit Answer

Explanation / Answer

Hello Sir / Mam

Amount required to be deposited each year( at the beginning of the year) = $8,235.01

Assuming that the professor makes contribution in the beginning of each year.(as it is not clear in the question)

If the question requires the professor to make year end contributions, feel free to reach me in the comments and I'll get you the suitable answer.

I hope this solves your doubt.

Feel free to comment if you still have any query.

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Time Balance Additions Withdrawls Balance Tuition Fees per year 0 0 $8,235.01 $0.00 $8,976.16 $22,795.00 1 $8,976.16 $8,235.01 $0.00 $18,760.17 $23,706.80 2 $18,760.17 $8,235.01 $0.00 $29,424.75 $24,655.07 3 $29,424.75 $8,235.01 $0.00 $41,049.14 $25,641.27 4 $41,049.14 $8,235.01 $0.00 $53,719.72 $26,666.93 5 $53,719.72 $8,235.01 $0.00 $67,530.65 $27,733.60 6 $67,530.65 $8,235.01 $0.00 $82,584.57 $28,842.95 7 $82,584.57 $8,235.01 $0.00 $98,993.35 $29,996.66 8 $98,993.35 $8,235.01 $0.00 $116,878.91 $31,196.53 9 $116,878.91 $8,235.01 $0.00 $136,374.17 $32,444.39 10 $136,374.17 $8,235.01 $0.00 $157,624.00 $33,742.17 11 $157,624.00 $8,235.01 $0.00 $180,786.32 $35,091.86 12 $180,786.32 $8,235.01 $0.00 $206,033.25 $36,495.53 13 $206,033.25 $8,235.01 $0.00 $233,552.41 $37,955.35 14 $233,552.41 $8,235.01 $0.00 $263,548.28 $39,473.56 15 $263,548.28 $8,235.01 $0.00 $296,243.79 $41,052.51 16 $296,243.79 $8,235.01 $42,694.61 $285,344.77 $42,694.61 17 $285,344.77 $0.00 $44,402.39 $262,627.19 $44,402.39 18 $262,627.19 $0.00 $92,356.97 $185,594.53 $46,178.49 19 $185,594.53 $0.00 $96,051.25 $97,602.17 $48,025.63 20 $97,602.17 $0.00 $49,946.65 $51,944.52 $49,946.65 21 $51,944.52 $0.00 $51,944.52 $0.00 $51,944.52

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