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# Annuity for a Future Value

Your two children go to college in the future. First goes to college in 10 years from now, and will require \$20,000 each year for the four years of college. Second child goes to college 15 years from now, and will need \$24,000 each year for the four years of college. You wish to make equal, end of year payments between now and the point where your first child goes to college, i.e. in 10 years. If the interest rate is assumed to be 10% per year for each of the next 20 years, what must your deposit each year be?

#### Solution Preview

Note: The abbreviations have the following meanings

PVIF= Present Value Interest Factor
PVIFA= Present Value Interest Factor for an Annuity

They can be read from tables or calculated using the following equations
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
PVIF( n, r%)= =1/(1+r%)^n

Your two children go to college in the future. First goes to college in 10 years from now, and will require \$20,000 each year for the four years of college. Second child goes to college 15 years from now, and will need \$24,000 each year for the ...

#### Solution Summary

This solution provides assistance calculating the annuity for a future value.

\$2.19
The text passage describes a financial planning scenario where a parent needs to save money for their two children's future college expenses. It includes a detailed mathematical question about calculating the required annual deposit to meet these future expenses, given a specific interest rate.
single_question_with_answer
Given a text passage, determine:
    1. If it contains a mathematical question (including word problems or calculations)
    2. If an answer to that mathematical question is provided in the text

First, describe the content structure you found in 1-2 sentences.

Then provide your analysis in the following format:
TYPE: <one of the following values>
- NO_QUESTION
- SINGLE_QUESTION
- SINGLE_QUESTION_WITH_ANSWER
- MULTIPLE_QUESTIONS
- MULTIPLE_QUESTIONS_WITH_ANSWERS
system
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# Annuity for a Future Value

Your two children go to college in the future. First goes to college in 10 years from now, and will require \$20,000 each year for the four years of college. Second child goes to college 15 years from now, and will need \$24,000 each year for the four years of college. You wish to make equal, end of year payments between now and the point where your first child goes to college, i.e. in 10 years. If the interest rate is assumed to be 10% per year for each of the next 20 years, what must your deposit each year be?

#### Solution Preview

Note: The abbreviations have the following meanings

PVIF= Present Value Interest Factor
PVIFA= Present Value Interest Factor for an Annuity

They can be read from tables or calculated using the following equations
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
PVIF( n, r%)= =1/(1+r%)^n

Your two children go to college in the future. First goes to college in 10 years from now, and will require \$20,000 each year for the four years of college. Second child goes to college 15 years from now, and will need \$24,000 each year for the ...

#### Solution Summary

This solution provides assistance calculating the annuity for a future value.

\$2.19
user
The text passage describes a financial planning scenario where a parent needs to save money for their two children's future college expenses. It includes a detailed mathematical question about calculating the required annual deposit to meet these future expenses, given a specific interest rate.

TYPE: SINGLE_QUESTION_WITH_ANSWER