Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year in today's dollars. Alexis was born today and will go to school starting at age 18. She will go to school for 4 years. Johnny can earn 11% on his investments and tuition inflation is 7%. How much must Johnny save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college? O a. $2,694.56. b. $2,789.04. * OC $2,861.65. O d. $3,176.43.
Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year in today's dollars. Alexis was born today and will go to school starting at age 18. She will go to school for 4 years. Johnny can earn 11% on his investments and tuition inflation is 7%. How much must Johnny save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college? O a. $2,694.56. b. $2,789.04. * OC $2,861.65. O d. $3,176.43.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 52P
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![but
tion
Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year in today's dollars. Alexis was born today and will
go to school starting at age 18. She will go to school for 4 years. Johnny can earn 11% on his investments and tuition inflation is 7%. How much must
Johnny save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college?
O a. $2,694.56.
b. $2,789.04. X
OC. $2,861.65.
O d. $3,176.43.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1aa0c552-40ee-4ff6-9fcc-f22255a40a45%2F5cda96b0-114f-446c-bdce-1f9decfc9d8b%2Fs0d2y9p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:but
tion
Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year in today's dollars. Alexis was born today and will
go to school starting at age 18. She will go to school for 4 years. Johnny can earn 11% on his investments and tuition inflation is 7%. How much must
Johnny save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college?
O a. $2,694.56.
b. $2,789.04. X
OC. $2,861.65.
O d. $3,176.43.
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