College Savings Example 1 (Shifted Series)

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College Savings Example 1 (Shifted Series) An expectant father wants to know how much money he’d have to put in the bank on the day his daughter is born so her college education will be paid for by the time she goes off to school. Based on recent cost data for 4-year
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Unformatted text preview: public schools, he expects to pay $19,000 per year for tuition, room, and board. Assume these costs are incurred during the 18 th , 19 th , 20 th , and 21 st years and the money is invested in stocks that yield 6% above the inflation rate on average....
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