Your clients, Mona and George, would like to begin saving for their childrens college education. They have two kids who just turned 1 and 11 today. Each child will begin college at 18 and attend a private university for four years. Tuition is currently $18,000 per year and is increasing at 3% per year. Tuition payments are made at the beginning of each year. They can earn an after-tax rate of return of 8%. 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 final year of college?

In your response pretend you are emailing Mona and George concerning this financial goal.