Question: Diego has a 5 - year - old daughter. He wants to pay for her college education in full so she won t have to

Diego has a

5 -

year

-

old daughter. He wants to pay for her college education in full so she won

t have to face the burden of college loans. He believes he will need to have $

200, 000

saved by the time his daughter turns

18

in order to accomplish this goal. He decides that the least painful course of action is to set aside a fixed amount from his monthly paycheck. Assuming Diego can earn interest at an annual rate of

5.5 %,

how much will he need to withhold from each paycheck?

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