Assume that your parents wanted to have $ 110 comma 000 saved for college by your 18th birthday and they started saving on your first birthday. they saved the same amount each year on your birthday and earned 8.0 % per year on their investments. a. how much would they have to save each year to reach their goal? b. if they think you will take five years instead of four to graduate and decide to have $ 150 comma 000 saved just in case, how much would they have to save each year to reach their new goal?

A) Annual deposit= $2962.94

B) Annual deposit= $25,568.47

Explanation:

Giving the following information:

Your parents wanted to have $ 110,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 8.0 % per year on their investments.

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A) A= (100000*0.08)/[(1.08^17)-1]= 2962.94

B) A= (150000*0.08)/[(1.08^5)-1]= $25,568.47

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; planning;