B. $27,973.25 C. $25,250.00 D. $28,250.00 E. $19,088.65 The following information is for questions 18-20. Tom's daughter is going to college 5 years from now. And Tom is preparing to pay for his daughter's college tuition. The tuition is $20,000 per year. Tom's daughter is expected to finish her degree four years after she first enter the college. 18. Assume that the college allows students to pay their tuitions at the end of the year, what is the amount of money that Tom needs to have when his daughter first enters the college? The discount rate is 4%. E. $80,000 F. $83,672.54 G. $20,000 H. $72,597.90 I. $78,236.15 19. Currently, Tom is planning to set up an education account with 4% annual return. He is planning to put in $30,000 right now, and make annual deposits in the next five year until his daughter starts college. How much does Tom need to deposit every year so that he has enough money to cover the tuition for thefour years of college? Assume that the 4% return stops when Tom's daughter enters the college. A. $5,905.31 B. $14,183.8 C. $10,229.75 D. $8,183.8 E. $6,664.73 20. Five years later, when Tom's daughter enters the college, the college is experiencing some financial difficulty. So all students need to pay their tuitions at the beginning of the year. And the college is increasing the tuition by 1% per year starting next year. (The first tuition is still 20,000) How much does Tom need to add to the last deposit because of this change in tuition policy? A. $3,545.95 B. $4,006.65 C. $5,717.26 D. $4,000 E. $2,067.91 Page 5 of 8