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Jack wants to figure out how much to save for his daughter’s 4-year college education. She...

Jack wants to figure out how much to save for his daughter’s 4-year college education. She will begin college in 10 years and Jack wants her to attend his alma mater, Auburn University. Currently, Auburn costs approximately $8,000 per year for a 15-hour course load. Given inflation and typical tuition increases, Jack expects these costs to rise at a rate of 2.5% per year. How much does Jack need to save at the end of each year into an account that pays 5% compounded annually to cover his daughter’s expenses? Payments are due at the beginning of each academic year.
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