Question 37:

In about 25 years, you're going to have a kind that wants to go to college. Assume that it cost $80,000 to put a kid through college today. Assume also that college tuition will rise at exactly the rate of inflation (an average annual rate of 4%). What will it cost you to put your kid through college?

Question 38:

Refer to question 37. If you could get an average annual return of 7% on an investment, how much money would you need to deposit each year to reach your goal by the time your kid is ready to go to college?

Question 39:

Refer to questions 37 & 38. Suppose that you could only afford to deposit $2,500 each year. What rate of return would you need to reach you goal in question 37?