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To provide for a college education for her son, a woman opened an escrow account in which equal deposits were made. The first deposit was made on January 1, 1995, and the last deposit was made on January 1, 2012. The yearly college expenses including tuition were estimated to be $8000, for each of the 4 years. Assuming the interest rate to be 5.75%, how much did the mother have to deposit each year in the escrow account for the son to draw $8000 per year for 4 years beginning January 1, 2012?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92635998

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