Problem:
Steve Short wants to set up a fund to pay for his daughter's education. In order to pay her expenses, he will need $23,000 in four years,$24,300 in five years, $26,000 in six years, and $28,000 in seven years. If he can put money into a fund that pays 4 percent interest,
Required:
Question: What lump-sum payment must he place in the fund today to meet his college funding goals?
Note: Please provide reasons to support your answer.