Your smart daughter has just turned 6 years old, and she plans to attend college at age 18.

Current education costs per year are $24,000. These costs are expected to grow at a rate of

3% per year for the next 15 years. Assuming that your daughter will spend 4 years in college

and that the effective annual interest rate for the next 20 years is 8%, what is the fixed

annual amount that you have to put away each year for the next 11 years starting a year

from today to pay for her education? Assume that youll pay the tuition at the

beginning

of

each college year.