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QUESTION 4 Suppose that a couple has just had their first babynand they...

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Accounting

QUESTION 4
Suppose that a couple has just had their first babynand they wish to ensure that enough money will be availifole to pay for his college education. Currentry, conlege tuition, books, fees, and other costs, average $35,000 per year. On average, fuition and other costs have historically increased at a rato of 3% per year.
Assuming that costs continue to increase an average of 3% per year, tuition and other costs for one year for this student in 18 years when he enters college will be closest to: 5
How much woutd the young couple reed to save every year to have the above amount when he turns 18? Assume the interest rate is 5% and grat they start saving when ho is bom.
Arnual imestmont: $
Assume the boy docides to study in Spain where education is free and does not need the money for university that his parents have saved for him. He decides to leave tho money invested at the 5% interest rate until retirement age, 65. How much will he have at retirement age? $
Please answer in excel
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