Jody would like to plan for her daughters college education. She would like for her daughter, who was born today, to attend college for 5 years, beginning at age 18. Tuition is currently $12,000 per year and tuition inflation is 6%. Jody can earn an after-tax rate of return of 8%. How much must Jody save at the end of each year, if she wants to make the last payment at the beginning of her daughters first year of college?

$3,145.81.

$3,745.31.

$4,080.32.

$4,406.75.