Suppose it costs $15,000 per year (in early 2010 dollars) for tuition, room, board, and living expenses to attend a public university in the Southeastern United States.
a. If inflation averages 6% per year, what is the total cost of a four-year college education starting in 2020 (i.e., 10 years from now)?
b. Starting in January of 2010, what monthly savings amount must be put aside to pay for this four-year college education? Assume your savings account earns 6% per year, compounded monthly (0.5% per month).