Daniel and Amelia want to know how much it will cost to put their daughter Ella through college. She will begin college in 15 years. Assume college costs $10,000 per year today. Ella will attend college for 4 years. College costs increase 4.0% each year. How much money do Daniel and Amelia need to have on hand on the day Ella BEGINS college, in order to fund her entire college degree? (Assume the money will earn 6% annual interest while it is in her college savings account). Ella will spend the entire amount available during her college years. Each year of college she will withdraw more than the prior year (the amount will increase by the college cost inflation rate). (amortize the balance in her account to zero at the end of the 4 college years...base calculations on a growing annuity withdrawal schedule). (amortize the balance in her account to zero at the end of the 4 college years).

Charlie and Olivia want to know how much it will cost to put their daughter Chloe through college. She will begin college in 30 years. Assume college costs $11,000 per year today. Chloe will attend college for 4 years. College costs increase 4.0% each year. How much money do Charlie and Olivia need to have on hand on the day Chloe BEGINS college, in order to fund her entire college degree? (Assume the money will earn 6% annual interest while it is in her college savings account). Chole will spend the entire amount available during her college years. Each year of college she will withdraw more than the prior year (the amount will increase by the college cost inflation rate). (amortize the balance in her account to zero at the end of the 4 college years...base calculations on a growing annuity withdrawal schedule). (amortize the balance in her account to zero at the end of the 4 college years).