You wish to provide for some of the private school expenses of your niece by making a single investment now into a financial account from which her parents can withdraw the funds for annual tuition. The first table below shows the dates at which the tuition payments need to be made. The second table shows the current tuition rates for the various levels of schooling. Assume that the date today is July 1, 2008.

If the financial account earns 5% interest every 12 months (each year), and the annual inflation rate for tuition is 3%, how much must you deposit now into the account to provide for these tuition payments?