Question: Suppose that you wish to send your daughter to a private, four-year college. She will not enter college for another fifteen years and the current annual cost is $25,000. Assuming that this annual expense will grow at 5.6% each year and that your annual return on any investment will earn 7.5% per year. You currently have nothing invested.
If you want to invest the same amount each month, what is the monthly amount needed to achieve this goal?