A married couple with a new child wish to save for the child’s college education. The current price of a 4-year degree today $88,000. They couple expect that inflation on tuition will be 4% per year for the next 18 years when the child will enter college.
The couple begins with a $10,000 investment in a mutual fund that is expected to earn 7% per year for the next 18 years. How much more will they need to invest (assuming 7%/year return) at the end of each of the 18 years to have an amount equal to pay for the cost of a 4-year education in 18 years? Round your answer to the nearest whole dollar.