Problem 1. Assume the current (4) year cost to attend Park University for tuition and books is $12,500. It is estimated that these costs will grow at a 7% annual rate.
Problem 2. The money that you annual set aside to meet this financial obligation is expected to earn an estimated 5% annually for the 7-year period (period from age 10 to age 17).
Solve:
How much money has to be set aside annually to have the entire estimated 4 years college tuition and book costs by the time your child hits age 17.