SEQUENCE H2. LtCol Snyder wants to save for his kid's college in 8 years. Assume only 4 years of college, with tuition due at the beginning of the year. College is currently $54800 with annual increases of 4.7 percent forecast. LtCol Snyder wants to make 11 payments, beginning 1 year from now and ending 11 years later. These payments will increase from the initial amount a rate of 2 percent per year. LtCol Snyder expects to earn 7.5 percent per year.

What is the initial savings contribution at time 1 to exactly cover college expenses as specified above?