A couple plans to retire in 50 years; they plan to spend about $30,000 a year in retirement, which should last about 25 years. They can earn interest of 8% on retirement savings.

A. If they make annual payments into a savings plan, how much will they need to save each year? Assume first payment comes in 1 year?

B. How would the answer to part A change if couple realized in 20 years they will need to spend $60,000 on their childs college education?