Rashad and Kayla are saving for their daughter Kaliah's college education. Kaliah just turned 10 (at t = 0), and she will be entering college 8 years from now (at t = 8). College tuition and expenses at State U. are currently $15,000 a year, but they are expected to increase at a rate of 3.5% a year. Kaliah 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, Rashad and Kayla have accumulated $17,000 in their college savings account (at t = o). Their long-run financial plan is to add an additional $4,000 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 Kaliah's anticipated college costs? a. $1,706.29 b. $3,966.06 c. $2,615.33 d. $4,362.67 e. $2,377.58

Rashad and Kayh are saving for their duoghter Kaliab's college edvcation. Kaliah just turned 10 (at t=0 ), and she will be entering college 8 years from now (at t - 8). College tuition and expenses at State U, are currently $1,5,000 a year, but they are expected to increase at a rate of 35% a year. Kaliah sbould graduate in 4 years-if she takes longer of wants to go to graduate sehool, sbe will be on her own. Tuition and other costs will be due at the beginning of each sehool year (at t= 8,9,10, and 21). So far, Rashad and Kayla have accumulated $17,000 in their college savings account (at:0). Their long-run financial plan is to add an additional $4,000 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 10K. How large must the annual payments at t=5,6, and 7 be to cover Kaliah's aaticipated college costs? a. 51,706.29 b. 53,966.06 c. $2.61533 d. 54362.67 e. 12377.58