A new mother wants to save and invest $$75$ a month over the next $18$ years to establish

a college education fund for her child. If she wants this fund to be worth $$100,000$ in $18$

years, what is the minimum rate of return she would need to earn on her investment?

Assume monthly compounding. $($Hint: Consider using the future value function FV$()$ in

your spreadsheet.$)$

Suppose the mother knows of an investment that will guarantee a $12\%$ annual return compounded monthly. What is the minimum amount she should invest each month to achieve her goal?