6. Jeff Douglas believes strongly that they should help fully fund the equivalent of a state university education [4 years] for Paul and Marcy. Both sets of grandparents have volunteered to make a lump sum donation [501'50 spilt} to the mutual funds today. in other words, these generous grand parents have stated that they are willing to pool their funds and make a substantial deposit to support an education fund. Assuming that today's cost of that type of college education is $25,000 per year and that it will inate by 4% per year, how much must the grandparents donate to the mutual funds to fully fund these investments {to meet Jeff's goal]? (Assume that Paul and Marcy will start college in 12 and 11 years respectively. You will need to determine the present value of the future college costs. I have put a worksheet at the end of this document that you might nd helpful. If you are an Excel user, you can set this up within an Excel worksheet. Here are some steps to follow: A. First by growing the cost of education by 4% per year (12 years into the future for Paul and 11 years for Marcy] and then calculating the present value of those future cash ows. Keep in mind that Paul will be going to school for 4 years and so too will Marcy. So you will need to figure the future value of the cost of education for the rst year, second year, third year, and fourth year - each year 4% more costly than the year before