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Your son just turned 10 years old. He will need $40,000 at the beginning of each year for 4 years starting on his 19 th

Your son just turned 10 years old. He will need $40,000 at the beginning of each year for 4 years starting on his 19th birthday to attend university. You also wish to gift him $50,000 upon graduation. How much must you put aside every month, at the beginning of the month, starting today, to fund his education and gift, if you foresee earning a return of 5%, compounded monthly? Round to the nearest dollar.

  1. $1,301
  2. $1,327
  3. $1,388
  4. $1,394

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