Your aunt and uncle plan to send your cousin Mikey to a prestigious private school when he turns 13.  He will attend this school for 5 years.  Currently, the school fees are $20,000 per year.  The fee includes catered lunches, cultural excursions and sports activities. It is expected that the school fees will increase by 2.5% every year.  Mikey has just turned 8.  During his senior year he will need a car, which will cost (used) and estimated $15,000 at that time.  Your aunt and uncle have investments that generate an annual return of 8%.  

How much must your aunt and uncle put aside every month in order to be able to send Mikey to this private school and provide him with a car during his senior year?

Answer rating: 100% (QA)

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