A mother is panning for her sons college education to begin 10 years from today. For a 4 year degree, she estimates the yearly tuition to be $50,000 payable at the end of each year after college starts. She is certain she can earn 10% interest rate on her savings account.

a. How much does she need to have in savings at the time her son starts college? (Hint: the answer is not $200,000)

b. How much must the mother deposit today to be able to have enough money to cover her sons college education? If you could show the formulas you use for each problem and how you solved, that would be great. Thank you.