Solution for QID #3587: On the day your child is born, you open a college savings fu | StudyHelpMe

On the day your child is born, you open a college savings fund for him/her with an initial deposit of $5,000. You want this account to be able to cover his/her entire tuition for 4 years of college. In 18 years, when your child is beginning to attend college, 4 years of college tuition will cost $360,000. The bank is giving you an interest rate of 2.5% compounded annually. How much will you need to deposit each month in the college savings account in order to have saved enough money for 4 years of his/her college tuition? Assume that you will make 1 payment equal to the entire amount of tuition in 18 years.