In ten years from now and you have a newborn child. You start saving for your childs education. When your child starts University when they are 18, fees will be $50,000 per year. Although the cost for the first year is expected to $50,000, that cost will increase due to inflation rate of 4% per year. The first tuition payment will be made in 28 years from today or 18 years from the day your child is born. You expect them to get a Masters degree, thus they will be in University for 7 years and you will need to make 7 annual tuition payments. To pay for this education, you plan on making 18 equal annual deposits into a savings account. Your first deposit will be 1 year after your child is born, and the last deposit will be on the day that they start University, on their 18^th birthday. The day of your last savings deposit will also be the day that the first tuition payment is due. If the discount rate is 9.76% sa (semi-annual compounding), how much must your first deposit be in order to pay for your childs university education?

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