A couple plans to pay their childs college tuition for 4 years starting 18 years from now.

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A couple plans to pay their child’s college tuition for 4 years starting 18 years from now.

The current annual cost of college is C$7,000, and they expect this cost to rise at an annual rate of 5 percent. In their planning, they assume that they can earn 6 percent annually. How much must they put aside each year, starting next year, if they plan to make 17 equal payments?

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