Ed and Mary come to your office to plan for their daughter's education when she turns 18 in 15 years. She is currently 3 years old, but they want her to attend a private liberal arts college. They believe the general rate of inflation will be 2.5% and the college rate will be 5%. You have been managing their investments and they are averaging a 6% return, but you believe it is prudent to assume the education funds will earn a less volatile 3% while their daughter is in college. You calculate that their daughter's first year of college will cost $51,973.

If they want to fund 4 years of college for her, how much will they need to have saved by the time she starts college?