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Essay

Use the information for the question(s) below.
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's university education. Currently university tuition, books, fees, and other costs average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year.
-Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for their child's university education.They decide to make deposits into an educational savings account on each of their child's birthdays,starting with the first birthday.Assume that the educational savings account will return a constant 7%.The parents deposit $2,000 on their child's first birthday and plan to increase the size of their deposits by 5% each year.Draw a timeline that details the amounts that will be deposited into the account up to and including their child's 18th birthday.