How much more must keith save each year


Problem:

Keith Stone has 10-year old daughter, Kate, who will be entering college in 8 years. Keith estimate college costs to be $16,000 $17,000, $18,000 and $19,000 payable at the beginning of each of Kate's four years in college. He has $2,000 in his account and intends to leave it there for the next 8 years.

How much more must Keith save each year (assume end of the year payments) for each of the next 8 years to have enough savings to pay for his daughter? Assume Keith can earn 9% on his savings.

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