# Annuity (monthly deposits)

Not what you're looking for?

Assume you now have a child and you are planning for her college education. You would like to make monthly deposits over the next 21 years (first payment to be made one month from today) with the final payments to be made at her 21st birthday(a total of 252 deposits) so that you will be able to cover her expected expenses while in school. You expect to pay expenses on her 18th, 19th,20th,and 21st birthdays (months 216, 228,240 &252 respectively. assume that the current (time period 0) annual cost of college is $35000 and that you expect annual inflation to be 6% per year from now through your child graduation date. If you expect to earn a return of 10% annually on your investments what will the amount of each of the monthly deposits?

##### Purchase this Solution

##### Solution Summary

The solution calculates the value of Annuity (monthly deposits) to be able to cover expected expenses while in school.

##### Solution Preview

See attached file

Assume you now have a child and you are planning for her college education. You would like to make monthly pdeposits over the next 21 years(first payment to be made one ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

##### Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

##### Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

##### IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)