Answer:
The amount of the equal, annual deposits made on birthdays 5 through 15 is $3,970.58
Explanation:
First, let's calculate the present value of the college expenses on her 17th birthday (a year before college) using NPV formula
NPV(9%, 20000...32000) = $82,839.69
Now, its value on 15th birthday should be equal to 82,839.69 / (1 + 9%)² = $69,724.51
Using the PMT formula, we can calculate the annual amount they have to invest for 11 years to get to this sum at 9% annual rate
PMT(rate = 9%, nper = 11, pv = 0, fv = 69,724.51, 0) = $3,970.58
