How much must you deposit at beginning of each year

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Reference no: EM132021056

1. Jennifer just turned 23 and can save $500 per quarter, starting in three months. If Jennifer can earn 7% compounded quarterly, what age will she be when she accumulates $1,000,000?

2. In 4 years, your son will be entering college and you would like to help financially. You decide to create a college fund and make four annual deposits, starting now. In four years, you would like your son to be able to make four annual withdrawals of $7,500 from the fund (at the beginning of each year) that will cover his annual tuition. If the college fund earns 3.6% compounded annually, how much must you deposit at the beginning of each year? Assume tuition remains the same for the four years your son is attending college.

Reference no: EM132021056

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