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Larry and Linda want to put away money today (i.e., a lump sum) for their 2-year old son's college education. Assume that they can earn
Larry and Linda want to put away money today (i.e., a lump sum) for their 2-year old son's college education. Assume that they can earn an annual return of 10% on their investment and that the investment will be in the account until their son turns 18 years old. Also assume that the $20,000 expected tuition per year and that the education amount has 4%/year inflation (i.e., increases by 4% per year). What is the lump sum amount that has to be put away today for their son's education? Show all work for full credit.
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