1. A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8 percent interest on retirement savings.

1. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year.
2. How would the answer to part (a) change if the couple also realizes that in 20 years, they will need to spend $60,000 on their childs college education.