On the day of his daughter's birth, a father decided toestablish a fund for...

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Accounting

On the day of his daughter's birth, a father decided toestablish a fund for her college education. The father wants to beable to withdraw $4000 from the fund on her 18th, 19th, 20th and21st birthdays. If the fund earns interest at 9% per year,compounded quarterly, how much should the father deposit at the endof each year, up through the 17th year?
a.) $465.31 b.) $380.71 c.) $338.41 d.) $423.01 e.) None of theabove

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Step 1 Calculation of Present Value at the end of 17thyear Amount to be withdrawn each year from 18th year to 21st year 4000 Quarterly Interest rate 94 See Answer

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In: AccountingOn the day of his daughter's birth, a father decided toestablish a fund for her...On the day of his daughter's birth, a father decided toestablish a fund for her college education. The father wants to beable to withdraw $4000 from the fund on her 18th, 19th, 20th and21st birthdays. If the fund earns interest at 9% per year,compounded quarterly, how much should the father deposit at the endof each year, up through the 17th year?a.) $465.31 b.) $380.71 c.) $338.41 d.) $423.01 e.) None of theabove