SOLUTION: Could I please get some help on this problem? Thank You! Your new born child will be starting college in 18 years. You expect your child's college education to cost $19,770 per

Question 739002: Could I please get some help on this problem? Thank You!
Your new born child will be starting college in 18 years. You expect your child's college education to cost $19,770 per year, due at the beginning of each year. How much must you set aside at the end of each year for your child to attend four years of college. You will not make any more deposit after the child turns 18. Assume an interest rate of 6.11%.
Correct Answer: 2,321.77
What I did:
FV = c/r[((1+r)^t)-1]
FV = 19,770/.0611[((1+.0611)^4)-1]
FV = 86,627.41
C = 86,627.41/(1/.0611)[1-((1/1.0611)^18)]
C = 8,066.82 <--- I should be getting 2,321.77 not 8,066.82
Answer by MathTherapy(10551) (Show Source): You can put this solution on YOUR website!
Could I please get some help on this problem? Thank You!
Your new born child will be starting college in 18 years. You expect your child's college education to cost $19,770 per year, due at the beginning of each year. How much must you set aside at the end of each year for your child to attend four years of college. You will not make any more deposit after the child turns 18. Assume an interest rate of 6.11%.
Correct Answer: 2,321.77
What I did:
FV = c/r[((1+r)^t)-1]
FV = 19,770/.0611[((1+.0611)^4)-1]
FV = 86,627.41
C = 86,627.41/(1/.0611)[1-((1/1.0611)^18)]
C = 8,066.82 <--- I should be getting 2,321.77 not 8,066.82

If you're looking to have $79,080 ($19,770 * 4) after 19 years (first payment made at the beginning of the birth year), then the annual amount to be deposited is: $, or $

You can do the check!!

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