Reference no: EM131571621

Andy will commence his university education in six years. He has decided to partake in a four-year business course at McGill University. The yearly education cost of $30,000 is due at the end of each year and will remain unchanged throughout the entire period of the study. His parents started an education fund with a yearly contribution of $3,500 for him six years ago. They made the yearly contributions at the end of each year. The parents have decided to contribute the same amount into the fund for another six more years. Determine the additional yearly contribution for the next six years that enables Andy to attend university (a applicable rate of interest of 12% is to be used throughout this question for discounting or compounding).