Question 1131686
the projected cost of tuition, fees, and room and board when she starts amounts to 65,000 each year.


the investment period is 18 years.
the 65,000 is the future value at the end of the investment period.
at 4.5% interest each year, the payments made at the end of each year of the investment period will need to be $2420.40.


the financial calculator i used is the TI-BA-II.
the inputs were:


present value = 0
future value = 65000
interest rate per year = 4.5%
numbe of years = 18.
payments are made at the end of each year.


i then had the calculator provide me with the payment required at the end of each year.
the calculator told me the payments required at the end of each year would be 2420.39834.
that equals 2420.40 when rounded to two decimal places.