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Tuition costs are expected to increase at a rate of 8% per year. The first year's tuition is due one year from now and will
Tuition costs are expected to increase at a rate of 8% per year. The first year's tuition is due one year from now and will be $2,000. A fund is to be set up today to cover tuition costs for 4 years in an account that will earn interest rate (i). How large must the fund be if:
(a) i = 5%
(b) i = 8%
(c) i = 10%
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