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You are working as a financial planner. A couple has asked you to put together an investment plan for the education of their daughter. She
You are working as a financial planner. A couple has asked you to put together an investment plan for the education of their daughter. She is a bright yearold her birthday is todayand everyone hopes she will go to university after high school in years on her th birthday. You estimate that today the cost of a year of university is $including the cost of tuition, books, accommodation, food and clothing. You forecast that the annual inflation will be You may assume that these costs are incurred at the start of each university year. A typical university program lasts years The effective annual interest rate is and is nominal.
Suppose the couple invests money on her birthday, starting today and ending year before she starts university. How much must they invest each year to have money to send their daughter to university? Do not rounded intermediate calculation Round answer to two decimal places.
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