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Johns daughter is just born today. He wants to make sure that he has saved up enough money for her college tuition on his daughters
Johns daughter is just born today. He wants to make sure that he has saved up enough money for her college tuition on his daughters 18th birthday. Based on current estimates, he figures that college expenses will amount to $40,000 per year for 4 years (ignoring any inflation or tuition increases during the 4 years of college). How much money does John need to have today in an account that earns 7% per year?
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