Kevin plans to save for his 4-year school, which starts 6 years from now. Kevin will need to make the first payment 6 years from today. He identifies a savings plan that allows his to earn an interest of 8 percent annually. The current annual expenditure is $7,200 and it is expected to grow by 7 percent annually. How much should Kevin deposit each year, starting one year from today? Assume that he plans to make 4 payments.
Requirements: calculation step by step and explanation