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You want to begin saving for your daughter to go to graduate school at Oklahoma starting 10 years from now. You expect that you will
You want to begin saving for your daughter to go to graduate school at Oklahoma starting 10 years from now. You expect that you will need to make tuition payments of $3.000 per month for the two years (24 months) that she is in school. The first of those 24 payments will be due exactly 10 years from today. You want to invest the same amount of money into a college investment fund each month. Your first investment into the fund will be today. Your last investment into the fund will be exactly 10 years from today - the same day you need to make that first tuition payment. You expect the college investment fund to earn a 6.50% (APR with monthly compounding) rate of return per year for as long as you have any money in it. How much money do you need to put into the fund each month (starting today) so that you will be able to pay for graduate school for your daughter?
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