"you had your first child recently. you would like to set aside some funds so that your child will be able to attend the university of texas as an undergraduate without taking on any student loans. total costs of attendance for undergraduate students currently amount to $28,000 per year and are expected to continue to grow at a 2.5% growth rate per year. assume that the four-year college expenses for the first year of college need to be paid exactly 18 years from today and that the subsequent costs need to be paid at an annual frequency 19, 20, and 21 years from today. you would like to make 18 equal annual payments starting today to your child’s college savings account to be able to cover the expected college costs. the savings are invested in risk-free treasury securities that offer a return of 2%. how large are the equal annual contributions to the college savings account over the next 18 years? ""

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; avoid combining alcohol and

answer; break-even analysis;