4. Question 4 1 pts You want to begin an investment plan for your new born daughter's college education. You plan to put money in an investment account that is expected

to yield annual return of 6.16 % per year compounded yearly. You estimate you will need $7500 per year for each year for 4 years after your daughter turns 18. First deposit is on her first birthday and last is on her 17th birthday. First withdrawal is on her 18th birthday. 1. What should be the balance on her account on her 17th birthday (after you make the last deposit) so that you can make all four of her tuition payments? Enter in the Answer Box below. 2. How much should you invest each year (assume equal amount is deposited each year) so that the you will have a zero balance after withdraw on her 21st birthday. First solve using Excel. Then check using the annuity formulas modified as appropriate for this problem. 3. What annual return rate would be needed if you invest only $500 per year? 4. Draw a cash flow diagram for this situation. Assume deposits and withdraws take place on your daughter's birthday. Also draw a cumulative discounted cash flow chart.