Scott and Linda Have Been Saving to Pay for Their

Scott and Linda have been saving to pay for their daughter Casie's college education.Casie just turned 10 at (t = 0) , and she will be entering college 8 years from now (at t = 8) .College tuition and expenses at State U.are currently $14, 500 a year, but they are expected to increase at a rate of 3.5% a year.Ellen should graduate in 4 years¾if she takes longer or wants to go to graduate school, she will be on her own.Tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11) .
So far, Scott and Linda have accumulated $15, 000 in their college savings account (at t = 0) .Their long-run financial plan is to add an additional $5, 000 in each of the next 4 years (at t = 1, 2, 3, and 4) .Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7.They expect their investment account to earn 9%.How large must the annual payments at t = 5, 6, and 7 be to cover Casie's anticipated college costs?

A) $1, 965.21
B) $2, 068.64
C) $2, 177.51
D) $2, 292.12
E) $2, 412.76