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    Monthly Investments

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    Suppose that you wish to send your daughter to a private, four-year college. She will not enter college for another fifteen years and the current annual cost is $25,000. Assuming that this annual expense will grow at 5.6% each year and that your annual return on any investment will earn 7.5% per year. You currently have nothing invested.

    If you want to invest the same amount each month, what is the monthly amount needed to achieve this goal?

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    Solution Preview

    Please find my response attached.

    I recommend that you use a financial calculator or Excel to solve such problems. However, since financial calculators vary, I'll teach you how to do these problems in ...

    Solution Summary

    The expert examines monthly investments and the return on investment.