Question: Johnny and June would like to begin saving for their children s college education. They have four kids, ages 1 , 5 , 1 1

Johnny and June would like to begin saving for their childrens college education. They have four kids, ages 1,5,11, and 14. Each child will begin college at 18 and attend a private university for four years. Tuition is currently $11,000 per year and is increasing at 5% per year. They can earn an after-tax rate of return of 9%.
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 youngest childs last year of college?

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