You want to start saving for your newborn daughters college tuition. Assume tuition will be...
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You want to start saving for your newborn daughters college tuition. Assume tuition will be $100,000 per year for four years, she will start college 18 years from now, and tuition payments are due at the beginning of each year (i.e., the first payment is due 18 years from today, and the last one will be due 21 years from today). You plan to save a fixed amount each year for the next 17 years, with the first deposit one year from today. If you expect to earn a 5% annual return on your savings, how much do you need to save each year?
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