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Posted: April 20th, 2022

Mary wants to help pay for her

Question Assignment description

Mary wants to help pay for her granddaughter Beth’s schooling. She has determined to pay for half of the tutoring prices at State College, which are actually $11,000 per yr. Tuition is anticipated to improve at a price of seven% per yr into the foreseeable future. Beth simply had her 12th birthday. Beth plans to begin school on her 18th birthday and end in 4 years. Mary will make a deposit right this moment and proceed making deposits every year till Beth begins school. The account will earn four% curiosity, compounded yearly. How a lot should Mary’s deposits be every year so as to pay half of Beth’s tuition at the start of every faculty every year?

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