Boblementide A family wants to save money for their 8 year old son's college expenses. The son intends to enter college 10 years from now. They have estimated that it will take an annual amount of $40,000 in today's constant dollars in order to support their son's college expenses for the four years. Assume that these college payments will be made at the beginning of the school year. The future general inflation rate is predicted to be 6% per year and the forecast is for the market interest rate on their savings account will average 8% compounded annually. Based on these assumptions and values, wogole a) What is the amount of their son's freshman year expenses in terms of actual dollars? (Remember to show all work) b) What is the equivalent single-sum amount at the present time to cover these college expenses? HINT: You are allowed to roundup to the nearest whole percent to be able to use the Interest Tables c) What is the equal amount, in actual dollars, the parents must save each year until their son goes to college? 12 Isipi