Q1)Suppose you plan to send your daughter to college in 3 years. You expect her to earn two-thirds of her tuition payment in scholarship money, so you estimate that your payments will be $10,000 a year for 4 years. To estimate whether you have set aside enough money, you ignore possible inflation in tuition payments and assume that you can earn 8% annually on your investments. How much should you set aside now to cover these payments?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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Q1)Suppose you plan to send your daughter
to college in 3 years. You expect
her to earn two-thirds of her tuition payment in
scholarship money, so you
estimate that your payments will be $10,000 a
year for 4 years. To estimate
whether you have set aside enough money,
you ignore possible inflation in
tuition payments and assume that you can
earn 8% annually on your
investments. How much should you set aside
now to cover these payments?
Transcribed Image Text:Q1)Suppose you plan to send your daughter to college in 3 years. You expect her to earn two-thirds of her tuition payment in scholarship money, so you estimate that your payments will be $10,000 a year for 4 years. To estimate whether you have set aside enough money, you ignore possible inflation in tuition payments and assume that you can earn 8% annually on your investments. How much should you set aside now to cover these payments?
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