I have two children, ages 5 and 7. If I wish to put money away beginning this year to pay for their college education, I need to identify the amount that I must save each year.

Child 1 will go to college in 11 years.

Child 2 will go to college in 13 years.

The annual interest rate will be 10 per cent and will be compounded annually.

I will need $25,000 per child per year of college for four years of college for each child.

How much must I put away each year beginning at the end of this year?

Part 1: Compute the annual payment to be made each year so that I will have exactly covered the required amounts when the second child completes the fourth year of college. As a simplifying assumption, we will assume that the college will allow a single tuition payment to be made at the end of each year. I want to put away the same amount every year until the obligation is completed.