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The parents of a newbom baby would like to put money away today to cover 100% of the child's expected total 4-years of college tution.

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The parents of a newbom baby would like to put money away today to cover 100% of the child's expected total 4-years of college tution. The first sution payment is due exactly 18 years from today and the ne three payments are due at the end of years 19, 20 and 21. Suppose that the parents estimate that the cost of tuition will be $80.000 per year for the first three years, but that the fourth year's sution will be $50,000 Which comes closest to the amount of money that needs to be set aside today if the interest rate is 5%? OAS 16.857 $113,006 OC$ 196,781 ODS 104,719 OE$ 136,639 Question of 10

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