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Blake Gray will finish high school in 7 years then wants to study a particular course at university which will take 4 years and cost $19 900 per year, paid at the start of each year. His parents want to pay for the course and they decide to start putting funds aside at a steady rate with the first payment today and continuing annually to the final year of the course. They will deposit the funds into an investment account that earns 4.49% per annum. (a) What is the present value of the university course fees?(b) How much money must his parents save each year starting from today?

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Nestor Rutherford
Nestor RutherfordLv2
28 Sep 2019

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