3. Your client has a 2-year old child whose college education they plan to fund when the child turns 18 in EXACTLY 16 years They plan to accumulate a lump sum by the first day of school to pay their...

Extracted text: 3. Your client has a 2-year old child whose college education they plan to fund when the child turns 18 in EXACTLY 16 years They plan to accumulate a lump sum by the first day of school to pay their child $2,000 a month BEGINNING the first day of school for the next 4 years (48 monthly payments). How much must your client invest EACH MONTH starting TODAY at the BEGINNING of each month in the mutual fund portfolio you recommend with a 7% expected return? STEP 1: Calculate the lump sum your child will need at the start of the their FIRST semester that will provide them with a $25,000 payment at the beginning of each semester. PV I/Y РМТ FV