Example 8: Lanie is a single mom who has 3 children, ages 1, 5 and 9. While she is struggling a bit, she would like to pay for half of their education at a public college. The annual cost of education is currently $20,000 and has been increasing at 6% and is expected to continue. Her portfolio that was established for education has $25,000 in it and earns an average rate of return of 8%. If she would like to fund half of four years of college for each of the children, how much must she save each year at the end of the year, for the next nine years (round to the nearest $100)? Use the traditional method -Step l: Determine the education needs for the three children at age 18 for the 9-year old. Step 2: Determine how much Lanie must contribute each year. Example 8: Lanie is a single mom who has 3 children, ages 1, 5 and 9. While she is struggling a bit, she would like to pay for half of their education at a public college. The annual cost of education is currently $20,000 and has been increasing at 6% and is expected to continue. Her portfolio that was established for education has $25,000 in it and earns an average rate of return of 8%. If she would like to fund half of four years of college for each of the children, how much must she save each year at the end of the year, for the next nine years (round to the nearest $100)? Use the traditional method -Step l: Determine the education needs for the three children at age 18 for the 9-year old. Step 2: Determine how much Lanie must contribute each year