Problem One: Time Value Money Calculation (USE SHEET LABELED PROBLEM ONE) A father is trying to save for his daughter's college education, starting when she is born (Year 0). She will begin college at 18 years old, and plans to graduate in four years. Based on his best information, he estimates that in year 1 of college (i.e. 18 years away), tuition, room and board, and fees will cost $21,000, $5,250, and $950, respectively. Furthermore, he expects that tuition will inflate by 3% each year, room and board by 5%, and fees by 1%. The father wants to have all of his daughter's projected college expenses covered by the time she starts her first day of class in 18 years. The father will make yearly investments in an account that will earn 5.5% per year on average. OBJECTIVES: 1. Find the yearly college expense starting at year 18. (College will go 4 years, and keep the projected college expenses in terms of its value in its respective year). 2. Calculate the balance needed in the investment account when college begins. (assume that money remains invested earning the APR while she is in college. Also tuition is paid at the beginning of the school year, so the first tuition payment is at the end of year 18) 3. Solve for the annual payment (PMT) that will reach the college fund goal, assuming that the account has a starting amount of $1500. 4. Consider the following alternative payment plan: in year 1, the father decides on a payment of $3,000, and for successive annual payments to grow by a fixed percentage. What is the growth rate required to have the balance needed when college starts