Question
The university tuition and expense is currently $14,500 per year, but they are expected to increase at a rate of 3.5% per year. According to
The university tuition and expense is currently $14,500 per year, but they are expected to increase at a rate of 3.5% per year. According to university tuition policy, the tuition and other costs will be due at the beginning of each academic year. Currently, Samer and his wife have accumulated $15,000 in their savings account. and according to their long-run financial plan, they will be adding $5,000 in each of the next 4 years. Then they plan to make 3 equal annual contributions in each of the following years. They expect their investment account to earn 9%. Based on the above information, answer the following questions: How much should Samer and his wife accumulate in their saving account to cover the university tuition and expense of the 4 years? Answer How much must be the value of each of the annual payments (After the fourth year) to cover the anticipated university costs? Answer
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