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?