A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $20,086.00 per year (all expenses included). Tuition will increase by 5.00% per year going forward. The professor's oldest daughter will start college in 16 years, while his youngest daughter will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 8.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (The oldest daughter's first tuition payment will be in exactly 16 years)
How much does he need to deposit each year in this mutual fund to successfully put each daughter through college? (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when the OLDEST daughter, starts college.)