FINANCE
5-40 (Required Annuity Payments) A father is now planning a savings program to put his daughter through college. She is 13, and she plans to enroll at the university in 5 years, and should graduate 4 years later. Currently the annual cost (for everything, food, clothing, tuition, books, transportation, and so forth) is $15,000, but these costs are expected to increase by 5% annually. The college requires that this amount be paid at the start of the year. She now has $7500 in a college savings account that pays 6% annually. Her father will make six equal annual deposits into her account, the first deposit today, and the sixth deposit on the day she starts college. How large must each of the 6 payments be?
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