Asim and Asma are saving for their daughter Iqra's college education. Iqra just

turned 10 (at t = 0), and she will be entering college 8 years from now (at t = 8).

College tuition and expenses at Islamabad are currently $14,500 a year, but they

are expected to increase at a rate of 3.5% a year. Iqra should graduate in 4 years--

if she takes longer or wants to go to graduate school, she will be on her own.

Tuition and other costs will be due at the beginning of each school year (at t = 8, 9,

10, and 11).

So far, Asim and Asma have accumulated $15,000 in their college savings account

(at t = 0). Their long-run financial plan is to add an additional $5,000 in each of

the next 4 years (at t = 1, 2, 3, and 4). Then they plan to make 3 equal annual

contributions in each of the following years, t = 5, 6, and 7. They expect their

investment account to earn 9%. How large must the annual payments at t = 5, 6,

and 7 be to cover Iqra's anticipated college costs?