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Kofi and Diamond are saving for their daughter Alyssa's college education. Alyssa just turned 1 0 ( at t = 0 ) , and she
Kofi and Diamond are saving for their daughter Alyssa's college education. Alyssa 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. Alyssa 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, Kofi and Diamond 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 Alyssa's anticipated college costs?
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