George’s grandson, Matthew is 5 years old today. Matthew’s parents, Robbie and Jennie, have plans for Matthew to attend a 4-year university at age 18. George would like to save enough to pay for Matthew’s college tuition. Currently, tuition is $15,000 per year and is expected to increase at 7% per year. George can earn an annual compound investment of 10%. Calculate how much George needs to start saving at the end of each year (beginning this year) to pay for Matthew’s college tuition. Assume George’s last payment is made at the beginning of Matthew’s first year in college.
A) $5,659.34
B) $8,886.18
C) $10,044.74
D) $5,144.86
