Your child will go to the college in 2024 and you are building financial plan to prepare for the college tuitions and fees. The expected cash flow you need in first year is $40,000 and increases by 5% per year. Tuition is due on August 31st each year in 2024, 2025, 2026, and 2027. You will deposit the same amount of money every month from January 31st, 2017 to August 31st, 2027. If you believe that you can earn 5% return every year, how much do you need to save every month.
Explain how you calculated each step if possible please. I am using a Financial calculator and woudl like to follow the steps.