Determining the investment rate

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Chlo is planning for her 15 year old daughters university education. She estimates that 1 year of university would cost $15 000 in todays dollars, but will rise with the rate with the rate of inflation of 2% year over year. How much would chlo need to have accumulated by the time her daughter starts university at the age of 19 provided she attends university for 3 years and will receive funds at the beginning of each year? Assume an investment rate of 3.6% compounded monthly.

Reference no: EM132531247

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