You have just had a baby boy and you want to ensure the funding of his college education. Tuition today is $15,000, and it is growing at 4 percent per year. In 18 years, your son will enter a four-year undergraduate program with tuition payments at the beginning of each year.

a. At the rate of 7 percent compounded annually, how much must you deposit today just to cover tuition expenses?

b. What amount must you save at the end of each year over the next 18 years to cover these expenses?

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