my teacher said the answer is between 30 and 40 thousand

Question

In-state tuition at Binghamton University for 2017 is $6670. Student fees for the academic year begginning September 2017 are $1640. Assuming tuition increases annually by 1.5% and student fees increase by $50 per year, how much money was needed to be invested in September of 1999, in order to pay all four years of school in September 2017, if the interest rate on the account used was locked at 7.25% compounded monthly?

Answer 1

S_tuition = 6670(1 - 0.015⁴) / (1 - 0.015)

S_fees = 2(2(6670) + 3(50))

 

S_tuition + S_fees = p(1 + 0.0725/12)⁴⁸