Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an annual rate of 5.7%. Anna wants to earn 3.8% annually on her investments. If she makes an initial investment one year from now, and annual additions at the end of each year until Steven starts college, what is the size of the annual (level) investments she must make to fund 4 years of Steven’s college education? Round the answer to two decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an annual rate of 5.7%. Anna wants to earn 3.8% annually on her investments. If she makes an initial investment one year from now, and annual additions at the end of each year until Steven starts college, what is the size of the annual (level) investments she must make to fund 4 years of Steven’s college education?

Round the answer to two decimal places.

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