You plan to save for the college education of your son. He will join college in 12 years. He will spend 4 years in college to complete his intended program and graduate. The current tuition is U.S.$ 25,000 per year. However, tuition fees will be rising at the rate of 5 percent annually. Tuition fees are paid at the beginning of an academic year. You will deposit immediately U.S.$ 7,000 to start the savings plan. How much do you need to deposit in the form of an annuity over the next 12 years to build enough savings to enable your son to pay for the tuition fees from the savings account. The savings plan will earn annually 8 percent.