Mr and Ms Berger are considering saving for the college education of their daughter, Susan, who is exactly 10 years old today. They estimate that college expense will run $30,000 per year when their daughter reaches college in 8 years. The annual interest rate over the next few decades will be 14 percent. How much should they deposit in the bank each year from today till Susan is 17 years old (8 deposits in total) so that their daughter will be completely supported through four years of college? *( please provide the calculation formula rather than using Excel function)
PVF-OA (14%, 4) = 2.9137
PVF (14%, 7) = 0.3996
PVF-AD (14%, 8) = 5.2883
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