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Problem 7-05

Holly wants to have $150,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 18 years if the funds can earn 5 percent. Use Appendix C to answer the question. Round your answer to the nearest dollar. $

If she can earn 6 percent, how much less will she have to invest each year? Use Appendix C to answer the question. Round your answer to the nearest dollar. $