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In Order to Send Your First Child to Law School

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In order to send your first child to Law School when the time comes,you want to accumulate $40,000 at the end of 18 years.Assuming that your savings account will pay 6% compounded annually,how much would you have to deposit if: a.You want to deposit an equal amount at the end of each year? b.You want to deposit one large lump sum today?


Definitions:

Depreciable Asset

A tangible or intangible asset subject to depreciation, reflecting the decline in the asset's value over its useful life.

Delivery Truck

A vehicle used by companies to transport goods from one location to another.

Company Logo

A graphic mark, emblem, or symbol used by enterprises to aid and promote public identification and recognition.

Motor Vehicle Licence

A document granting the legal permission to drive a motor vehicle on public roads.

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