How much should the of deposit in a lump-sum amount

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John and Betty Shelton would like to save for their son, Bob's, college education. They Current tuition at the college of their choice is $20,000 per year. Tuition inflation rate is expected to be 7 percent, while CPI is expected to be 3 percent. The Shelton's expect to earn twelve percent after-tax return on their investments.

Problem 1: How much should the of deposit in a lump-sum amount into a college fund today to fully fund the education?

Reference no: EM132949269

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