Your five-year-old daughter has just announced that she would like to attend college. The College Board has

reported that the average annual cost of tuition, room, and board, and other expenses at public four-year colleges is

$21,500 in 2023 (to be paid at the beginning of 2023). The cost has risen 3.5% over the last year. You feel this

percentage increase is a good long-term estimate. You also believe that you can earn a rate of 7% compounded

annually on investments to meet this goal./nB.

Assuming that you plan to have enough money saved in 13 years to cover all four years of college

costs, how much will you need to accumulate by that time? Assume all annual costs are paid at the

start of the school year.