13. (38pts) Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. College tuition, books, fees, and other costs are currently $10,000 per year. On average, tuition and other costs have increased at an average rate of 4% per year. Assume the baby starts college on her 18th birthday and that college tuition is paid at the beginning of each year of college. That is, the first college payment is made at the beginning of her freshman year (i.e. immediately after the child's 18th birthday). a) Assuming that all her college savings are invested in an account generating a 8% interest every year, and all college costs continue to increase at an average rate of 4% per year, then what is the amount of money she will need to have available on her 18th birthday to pay for all four years of her undergraduate education? b) How much does the couple need to save every year until their child's 18 th birthday to achieve their goal, assuming they make their first savings payment on their child's 1tt birthday, the last one on her 18 th birthday? Assume they save the same amount every year. c) How much does the couple need to save every time if they save once every third year (the first time on the child's 3rd birthday, and the last time on her 18th birthday) to achieve their goal? d) If the general inflation rate is 2% per year during this time (the entire 22 year period), what is the real dollar value of tuition for the first year (ONLY tuition for the first year)? e) Briefly explain (1-2 sentences, more will be penalized) how to interpret this "real dollar value" in terms of consumption today