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[Finance: Difference in Inflation]
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Can anyone explain how to get this answer? I got it wrong so i have the correct answer, i just can figure it out (Correct answer is: $111,072.40)
A client’s child will be attending college in 5 years. Assume current tuition and fees are $39,312, and inflation for college costs averages 3.2 percent, and she can earn 8.9 percent on the money she invests for this
purpose. The client wants to know how much she will need to set aside today to pay four years of tuition and fees.
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