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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 at t o 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. Tanisha 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, Nathan and Gabrielle have accumulated $ in their
college savings account at t o 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 Tanisha's anticipated college
costs?
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