Lynn Swartz's husband died $3$ years ago. Her parents, who have income of over $$200,000$ per year, want to ensure that funds will be

available for the education of Lynn$\text{'}$s eight$-$year$-$old son, Eric. Lynn is currently earning $$45,000$ a year. Lynn$\text{'}$s parents have suggested that

they start a savings account for Eric. They have calculated that if they invest $$4,000$ per year for the next $8$ years, sufficient funds will be

available at the end of $10$ years for Eric's college expenses. Lynn realizes that the tax treatment of the investments could significantly affect

the amount of funds available for Eric's education.