What is the amount that babu will have to have

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Babu saving for college for his sons tuition who is currently 11 years old and will begin college in 7 years. Babu has an index investment worth $7,500 that is earning 9.5% annually. Total expense for college is $15,000 per year and growing at 6% per year. Babu plans to invest in a mutual fund earning11 percent annually to make up the difference between college expenses and his current savings. In total Babu will make 7 equal investments with the first starting today and the last being a year before his son begins college. What is the amount that Babu will have to have to invest every year in order to hae enough funds to cover all his sons expense?

Reference no: EM132466169

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