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Your parents want to set-up a college fund to pay for her 4-year bachelors program. The tuition fee is $40,000 for the first year, payable

Your parents want to set-up a college fund to pay for her 4-year bachelors program. The tuition fee is $40,000 for the first year, payable at the end of the year. The tuition fee is expected to grow at 4% and the college fund will earn 9% interest per annum. Calculate the amount the college fund must have when she starts college.

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