ou intend to begin saving for the college education of your two children today. The children are two years apart in age: one will begin college 15 years from today an the other will begin 17 years from today. The college you want to send them (Tulane, of course) currently costs $35,000 per year. You expect that amount to increase each year at the rate of inflation, which you expect to be 2 percent College ye to per year payments will be made at the beginning of each school year (assume four ars of college for each child). You plan to make deposits into a special college fund here you expect your money to grow at a rate of 8 percent per year. You will make our fist deposit today, the second deposit one year from today (and so on), and your last deposit the same day your oldest child starts college at Tulane. How much do you need to deposit into the fund each year in nominal dollars? How much do you need to deposit into the fund each year in real dollars? Hint: The correct answer for each is between $5,000 and $15,000. Nominal Annual Deposits into College Fund Real Annual Deposits into College Fund