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What is the size of the annual investments she must make

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Question - Anna's son, Steven will start college in 10 years. Tuition costs $40,000 today, increasing at an annual rate of 5.0%. Anna wants to earn 3.8% annually on her investments. If she makes an initial investment one year from now, and annual additions at the end of each year until Steven starts college, what is the size of the annual (level) investments she must make to fund 4 years of Steven's college education?

Reference no: EM133087789

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