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A client of yours plans to send her child to college for four years starting...

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Finance

A client of yours plans to send her child to college for four years starting 18 years from now. Having set aside money for tuition already, she now decides to also plan for room and board, estimated to be $20,000 per year, payable at the beginning of each year. If she starts in one year making 17 (annual) payments into an investment account earning 5 percent annually, what annual payments must she make to be able to fund room and board?

Select one:

a.$2,882

b.$3,096

c.$4,706

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