Explain the current annual cost of university

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An investor plans to pay his son's university tuition fees for 4 years starting 18 years from now. The current annual cost of university is £9,200, and they expect this cost to rise at an annual rate of 2%. In his planning, he assumes that the appropriate discount rate is 3% per annual. How much must he saves each year, starting next year, if he plans to make 17 identical payments? Show all the calculations step-by-step. (USING PV ANNUITY to find the final answer, please not FV annuity)

Reference no: EM133116103

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