Craig and LaDonna Allen are trying to establish a college fund for their son Spencer, who just turned 3 today. They plan for Spencer to withdraw $10,000 on his 18th birthday amd $11,000, $12,000, and $15,000 on his subsequent birthdays. They plan to fund these withdrawals with a 10 year annuity, with the first payment to occur one year from today, and expect to earn in average annual return of 8%.

a. How much will the Allens have to contribute each year to achieve their goal?

b. Create a schedule showing the cash inflows (including interest) and outflows of this fund. How much remains on Spencer's twenty-first birthday?