You are saving for the college education of your daughter. She will enter college in 10 years (at t=10). The college costs are currently (at t=0) $15,000 per year and are expected to increase at an annual rate of 4% per year. All college costs are paid at the beginning of each academic year for the entire year. You assume that your daughter will take 4 years to earn her BS in Marketing.

You currently (at =0) have $20,000 for her education expenses in an educational fund. You plan to contribute a fixed amount each year over the next 10 years. Your first contribution will come at the end of this year (at t=1), and your final contribution will come at the date when you make the first payment for her college expenses (at t=10). You expect that the educational fund will earn 8% per year over the entire period (until she finishes her degree). What equal annual amount must you contribute to the educational fund over the next 10 years in order to (exactly) meet the expected costs of your daughters education?