Question
Attila Highlander just gave birth to a son she wants to send to UCSD. She estimates that the tuition will be $12,000 each year for
Attila Highlander just gave birth to a son she wants to send to UCSD. She estimates that the tuition will be $12,000 each year for 4 years, with the first payment due exactly 18 years from the day she gave birth and the last payment due 21 years from today. The annual average interest rate for the next 21 years will be 6%. How much should she save at the end of every year in a college fund to have enough money to pay for her sons tuition for four years? Assume she will save the same amount every year. Assume that her son will start at UCSDin exactly 18 years and will graduate in four years.
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