Your company, as part of their CSR, want to set-up an education fund to provide scholarships for children in the area you do business to pay for their 4-year bachelors program. The tuition fee is R 40 000 per semester payable in advance. The tuition fee is expected to grow at 4% and the education fund will earn 8% interest per annum.

Calculate the amount the education fund the company must have when the start college.