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  3. 1. you recently welcomed a new baby, jane, into yo

1. You recently welcomed a new baby, Jane, into your family, and you wish to...

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Accounting

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1. You recently welcomed a new baby, Jane, into your family, and you wish to send your child to a good university someday. Research has shown that it costs $15,000 per year (in today's dollars) to send a student to a good university. Jane is expected to start college on her 18th birthday and she is expected to graduate after 5 years. Your plan requires the first withdrawal on Jane's 18th birthday and withdrawal of the required amount for each year on each successive birthday. The expected inflation rate is 7%. The interest rate earned on savings accounts is expected to be 12%. Determine the amount of the equal, annual deposits that will be required to send Jane to university. Assume no deposits are made after Jane's 18th birthday. The first deposit will occur on Jane's first birthday and a deposit will occur on each successive birthday including Jane's 18th

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