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Question: Anne is planning to attend college when she graduates from high school in 7 years from now. She anticipates that she will need $10,000 at the beginning of each college year to pay for tuition and fees, and have some spending money.
Anne has made an arrangement with her father to do chores if her dad deposits $3,500 at the end of each year for the next 7 years in a bank account paying 8% interest. Will there be enough money in the account for Anne to pay for her college expenses? Assume the rate of interest stays at 8 percent during the college year.
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