Question 1204398
<font color=black size=3>
The 529 refers to the name of the type of savings account. It will not play a role in any of the calculations below. 


FV = future value = $40,000
P = deposit amount per year = unknown
r = 0.07 = annual interest rate in decimal form
n = number of years = 16


Let's find the annual deposit needed.
We'll use the future value of annuity formula.
FV = P*( (1+r)^n - 1 )/r
40000 = P*( (1+0.07)^16 - 1 )/0.07
40000 = P*27.8880535509344
P = 40000/27.8880535509344
P = 1,434.30590904971
P = 1,434.31



Answer: <font color=red size=4>$1,434.31</font>
</font>