You are a financial planner. Your clients primary objective is to finance her childs undergraduate studies costs. Today is January 1, 2020 and your client found out that your child was admitted to a prestigious five-year graduate program that requires a tuition of $50,000 per year to be paid on January 1 of each of the years 2025 to 2029 (its a five year very intense program). Regardless of the financing plan that you put into place, you believe it is reasonable to assume your client will earn an average annual return of 10.0% on her investments: she can borrow at 10.0% and/or deposit at 10.0%. This is basically your clients interest rate/discount rate. Suppose your client does not have any money on January 1, 2020.

Suppose now your client would be able to get money from her family on January 1, 2020 which she would deposit on January 1, 2020 at 10.0% interest rate. On January 1, 2025 to January 1, 2029 your client would withdraw $50,000 and pay tuition on those specific days. b. [10 points] How much should your client deposit on January 1, 2020 to be able to make the five payments and have zero balance in the bank account after the fifth payment?