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How much money would you need at the present to pay for 4 years of college tuition if the first year was anticipated to cost
How much money would you need at the present to pay for 4 years of college tuition if the first year was anticipated to cost $40,000 and increase by 5% every year? You can assume that each tuition payment could be made as an annual lump sum at year end. Assume an interest rate of 8%. Please also draw the cash flow diagram for this investment.
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