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Question - A couple has just given birth to a baby and named him Jimmy. They want to set up a college savings account for Jimmy and start saving for his college education. The following facts will help you work this problem:
Current Cost of Tuition, Room & Board $25,000
Expected Average Inflation for College Costs 5%
Expected Average Percentage Return on Savings 4%
Years until you need the first tuition payment 18
You will make 18 yearly payments with the first payment starting a year from now.
Based on the amount of 244155 how much will the couple need to save each year in Jimmy's account to reach their goal of having enough money to fund his college education at the end of 18 years? Round your answer to a whole number.
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