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James and Staci would like to plan for their son’s college education. They would like their...

  1. James and Staci would like to plan for their son’s college education. They would like their son, who was born today, to attend a private university for 6 years beginning at age 18. Tuition is currently $30,000 a year and has increased at an annual rate of 5%, while inflation has only increased at 2% per year. They can earn an after-tax rate of return of 7%. How much must they save at the end of each year if they would like to make the last payment at the beginning of their son’s first year of college?

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