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Your younger brother, Spencer, will start college in five years. He has just informed your parents he wants to go to UBC of which will cost $20,000 per year for four years (assumed to come at the end of the year). Anticipating Spender's ambitions, your parents started investing $3,000 per year five years ago and will continue to do so for five more years.
REQUIRED:
Problem 1: How much more will your parents have to invest each year for the next five years to have the necessary funds for Spender's education? Use 10% as the appropriate interest rate (discount rate) throughout this problem.
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