8) Assuming that college costs continue to increase an average of 4% per year and that all her collegesavings are invested in an account paying 7% interest, then the amount of money she will need tohave available at age 18 to pay for all four years of her undergraduate education is closest to

The amount in her savings account at the age of 18 years should be $97107.29

Explanation:

As the complete question is not given, by finding a similar question is found online and it is enclosed herewith.

From the data the current per year cost of college is given as

PV=$12500

Rate of Growth=i=4%

The cost of college when the baby is 18 years is given as

Using the present value of growing annuity find the four years college fee

Here

So the amount in her savings account at the age of 18 years should be $97107.29

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