The Taylor's have a 9 year old daughter that they wish to provide her college education. They estimate that it will cost $30,000 per year for 4 years when she decides to enter college 10 years from now. Assume that all investments can earn an 8 percent annual interest rate and that four annual payments will be made at the beginning of each year.
1. How much would the Taylors have to invest today to meet Emily's college expenses?
2. How much would the Taylors have to invest at the end of each year for nine years to meet their daughters college expenses?
3. Answer questions 1 and 2 using a 6% annual interest rate.