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A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,233.00 per year (all expenses included). Tuition will increase by 4.00% per year going forward. The professors oldest daughter, Sam, will start college n 16 years, whi e s y gest da ter Elie, ill begin n ears. The professor is saving for their college by putting money in a mutual fund that pays about 900% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. Sams first tuition payment will be in exactly 16 years) The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.) Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here Submit Answer

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1 Annual expenses 2 Tution fees increase @ 3 Sam 4 Ellie 5 Rate of interest 21233 496 16 18 9% 8 Sam Tution fee PV Ellie Tution fee PV 16 39769.01 39769.0108 17 41359.77 37944.7442 18 43014.16 36204.1596 19 44734.73 34543.4184 148461.333 18 43014.16 36204.16 19 44734.73 34543.42 20 46524.12 32958.86 21 48385.08 31446.98 135153.4 10 12 13 15 16 Total fund 17 Annual deposit 18 19 283614.753 $34,118.831 Annual expenses 2 Tution fees increase @ 3 Sam 4 Ellie 5 Rate of interest 21233 0.04 16 18 0.09 8 Sam 9 16 Tution fees Ellie 18 19 20 21 PV Tution fees PV SB$1*(1+SBS2)A9-89/(1+9%)^(A9-16) -SB$1*(1+SBS2)*A10-B10/(1+996)^(A10-16) -ses!(1+$BS2)*A11-811/(1+996)^(A11-16) SB$1*(1+SB$2)*A12-812/(1+9%)^(A12-16) -ses1(1+SB$2)^D10-E10/(1+9%)^(D10-1 -ses1(1+SB$2)^D11-E11/(1+996) ^(D11-1 -$BS1*(1+SB$2)^D12-E12/(1+9%) ^(D12-1 11 18 12 19 13 SUM(C9:C12) -SUM(F9:F12) 15 16 Total fund 17 Annual deposit 18 19 20 21 -C13+F13 -PMT(B5,16,C16)

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