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In 2 0 2 4 , Dr . Chen s daughter is 8 years old, and Dr . Chen is planning for his daughter s

In 2024, Dr. Chens daughter is 8 years old, and Dr. Chen is planning for his daughters college fund. He expects his daughter to start her college education at the age of 18, which is 10 years from now. The expected cost of tuition only for a 4-year college education in 2034 is $128,800($32,200 per year) at a public, in-state university. The college fund is invested to gain investment returns. Dr. Chen is considering two investment options. The first is a mutual fund that is expected to provide an annual return of 8%(0.67% per month). The second is a bank deposit account that offers an annual return of 3%(0.25% per month). Dr. Chen decides to put a fixed amount of money every month into the college fund starting from January 2024 to January 2034(12 months \times 10 years =120 months). The interest is monthly compounded. With the mutual fund investment returns, if Dr. Chen starts saving in January 2024, how much money does he need to put in every month to fully cover his daughters college tuition if he wants the account fully funded when she turns 18?(Hint: There are 10 full years left for Dr. Chen to save for his daughter. We assume Dr. Chens daughter will do a four-year college with a fixed annual tuition of $128,800($32,200 per year))

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