Summer 2015 Exam 1 \#8. Assume that you have just had a child today (Year 0 ) and you are planning for her college education. Tuition is currently $5,800 per year, but you expect tuition to grow at a 6.0 percent annual rate for the next 5 years, and then at 3.0 percent each year thereafter: tuition will be paid on her 18th,19th,20th, and 21st birthdays. You plan to make 84 quarterly deposits of $210.00 into an investment account, with the first deposit made in 1 quarter and the last deposit made on your daughter's 21 birthday (the day her tuition is due for her last year in college), You believe that you can earn an effective annual rate of return of 8.6683238481 , but with quarterly compounding. Your parents are so impressed with your forward planning and investment acumen, they have promised that they will make up for any money that you are short for your daughter's final year in college on her 21"t birthday. Given this data, determine how much they should expect to pay in 21 years. A. $6,222.54 B. $6,785,64 C. $7,348.74 D. $7,911.84 E. $8,474.94