Question
Nhan has a son who is 10 years old. Nhan wants to save money for her son's education when her son turns 18. She estimates
Nhan has a son who is 10 years old. Nhan wants to save money for her son's education when her son turns 18. She estimates that each year of university will cost her $50000, assuming that her son can finish his education in 4 years. Nhan will need to pay the tuition fee at the beginning of each year. Given that the interest rate today is 10%. Yet, the economy will fluctuate a little bit, and the interest rate will become 12% starting from the beginning of the first year of university. Calculate the amount of money Nhan needs to save each year starting from now until her son is 17 years old to fund her son's education.
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