38. Frank Chang is planning for the day when his child , Laura , will go to college . Laura has just turned eight and plans to enter college on her 18th birthday . She will need $ 25,000 at the beginning of each year in school . Frank plans to give Laura a Mercedes - Benz as a combination graduation and 22nd birthday present . The Mer cedes is expected to cost $ 55,000 . Frank currently has $ 10,000 saved for Laura . Also , Frank expects to inherit $ 25,000 nine years from now that will be used for Laura's education . Frank expects to be able to earn 7 percent after tax on any invest ments . How much must Frank save at the end of each of the next 10 years in order to provide for Laura's education and the Mercedes ?
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