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Jaylen and Ciara are saving for their daughter Keisha's college education. Keisha just turned 1 0 ( at t = 0 ) , and she
Jaylen and Ciara are saving for their daughter Keisha's college education. Keisha just turned at t and she will be entering college years from now at t College tuition and expenses at State U are currently $ a year, but they are expected to increase at a rate of a year. Keisha should graduate in yearsif she takes longer or wants to go to graduate school, she will be on her own. Tuition and other costs will be due at the beginning of each school year at t and
So far, Jaylen and Ciara have accumulated $ in their college savings account at t Their longrun financial plan is to add an additional $ in each of the next years at t and Then they plan to make equal annual contributions in each of the following years, t and They expect their investment account to earn How large must the annual payments at t and be to cover Keisha's anticipated college costs?
a $
b $
c $
d $
e $
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