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Nathan and Gabrielle are saving for their daughter Tanisha's college education. Tanisha just turned 1 0 ( at t = o ) , and she

Nathan and Gabrielle are saving for their daughter Tanisha's college
education. Tanisha just turned 10(at t = o), and she will be entering
college 8 years from now (at t =8. College tuition and expenses at
State U. are currently $14,000 a year, but they are expected to increase at a rate of 4.0% a year. Tanisha should graduate in 4 years--if 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 =8,9,10, and 11).
So far, Nathan and Gabrielle have accumulated $12,000 in their
college savings account (at t = o). Their long-run financial plan is to
add an additional $6,000 in each of the next 4 years (at t =1,2,3,
and 4). Then they plan to make 3 equal annual contributions in each of the following years, t -5,6, and 7. They expect their investment account to earn 10%. How large must the annual
payments at t =5,6, and 7 be to cover Tanisha's anticipated college
costs?

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