Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an annual rate of 5.7%. Anna wants to earn 3.8% annually on her investments. If she makes an initial investment one year from now, and annual additions at the end of each year until Steven starts college, what is the size of the annual (level) investments she must make to fund 4 years of Steven’s college education? Round the answer to two decimal places.
Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an annual rate of 5.7%. Anna wants to earn 3.8% annually on her investments. If she makes an initial investment one year from now, and annual additions at the end of each year until Steven starts college, what is the size of the annual (level) investments she must make to fund 4 years of Steven’s college education? Round the answer to two decimal places.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 52P
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Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an annual rate of 5.7%. Anna wants to earn 3.8% annually on her investments. If she makes an initial investment one year from now, and annual additions at the end of each year until Steven starts college, what is the size of the annual (level) investments she must make to fund 4 years of Steven’s college education?
Round the answer to two decimal places.
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