Assuming a rate of return of 8%, calculate the monthly savings needed for education assuming that savings will continue until the children's college education is completed.

  

Education Because of the quality of the schools in their state, Benjamin and Sarah want Scott, Janice, and Carly to go to private schools, but they are concerned about the cost. To assist in defraying the cost of educating the children, it is expected that all three children will attend Woodridge Preparatory School for K-12th grade. Sarah's position allows for tuition discounts (no additional multifamily discount) for teachers as follows: 50% discount on tuition for students in K-8th grades; and 75% discount on tuition for students in 9-12th grades. Current tuition is $3,665 per student per year. Tuition is expected to increase at 5% per year. Each child will begin kindergarten at age 5. Benjamin and Sarah would also like to provide financial assistance to their chil- dren while they attend college. They have decided to provide each child $15,000 (in today's dollars) per year for tuition, room, and board. Any additional funding will be provided by the trust, student loans, and part-time employment by the children. Today, tuition, fees, and other associated costs average $25,000 for a public university and are expected to increase at a rate of 5% per year. Each child is expected to begin college immediately after graduation from high school at age 18 and attend for four years.