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Question - Charles estimated a minimum need of $190,000 for college education fund for his son in 5 years when his son will start college. Assume that after-tax rate of return that Charles is able to earn from his investment is 6.10 percent compounded annually. Charles has already earmarked $22,640 for his son education. He understands that this amount is not enough to finance his son education. He is going to invest additional amounts each year at the beginning of the year until his son starts college. Compute the annual beginning of-the-year payment that is necessary to fund the current deficit.
Financial Statement Analysis and Preparation
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