Problem:
You think that in 15 years it will cost $75,000 to give your child a college education. Will you have enough if you take $25,000 today and invest it for the next 15 years at 8 percent? If you start from scratch, how much will you have to save each year to have $75,000 in 15 years if you can earn an 8 percent rate of return on your investments?