Solving for missing Normal Annuity PMTs
Your 6-year-old wants to go to Princeton for Med School. This will cost you $120,000 per year for 6 years. On her next birthday you start putting money into an account paying 8% annually and continue to deposit the same amount every year until her 17th birthday. The first tuition payment will be payable on her 18th birthday, the second on her 19th birthday etc. How large are your annual deposits to this account?
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$33,327
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Click here for PDF with solutions (see page 32)