20 years later from now, your (future) child will go to college. Currently, youre considering Sony University for your (future) child (or grandchild). The Sony University's out-of-state tuition is $33,794.00 USD. Estimate future costs of the college for your (future) child (or grandchild) and calculate needed annual savings for the college. Please specify your assumptions for the computation of future costs and needed annual savings.

(A good rule of thumb is that tuition rates will increase at about twice the general inflation rate. On average, tuition tends to increase about 8% per year. An 8% college inflation rate means that the cost of college doubles every nine years) Using tuition inflation, compound it at a reasonable "inflation" rate for education-related expenses for x number of years.

After you calculate this projected cost, your next job is to find the annual deposit needed to accomplish the goal - meeting the educational expenses. You must assume the investment rate of return (You can use savings account rate as your investment rate of return, for example).

What if you have $10,000 right now? How does this new information affect the previous answer in (3)? Whats the new annual deposit amount you should make?

Lets assume that you just won the lottery. Rather than making equal annual payments, you decided to make one lump-sum deposit today to cover your childs future college expense needs. There will be no additional deposit. How much should you make one lump-sum deposit today to accumulate the projected college education expense you need in 20 years?

This assignment should be completed using Excel spreadsheet. (Please show excel functions!!!!!!!!!!!!)