Keith Stone Has a 10-Year-Old Daughter, Kate, Who Will Be

Multiple Choice

Keith Stone has a 10-year-old daughter, Kate, who will be entering college in 8 years. Keith estimates college costs to be $16,000, $17,000, $18,000, and $19,000 payable at the beginning of each of Kate's four years in college. How much must Keith save each year (assume end-of-year payments) for each of the next 8 years to have enough savings to pay for Kate's education? Assume Keith can earn 9% on his savings.

A) $5,569
B) $7,720
C) $5,108
D) $7,677