1. Richard and Gloria are concerned about providing educational assistance to Richards children from his previous marriage, Laura (14) and Elaine (12). Under the provisions of the divorce agreement, Richard will be responsible for 60% of the cost of college education for Laura and Elaine, while his ex-wife will be responsible for 40%. The plan for Laura and Elaine is to attend a state university for four years, and the average cost of tuition, books, room, and board, etc. is $16,500 today. Richard plans to use $15,000 from the Treasury Notes he inherited from his father for each girls college expenses ($15,000 for Laura and $15,000 for Elaine). How much do Richard and Gloria need to set aside at the end of each month to save for Laura and Elaines college education?
   1. Recent reports suggest that college education costs are rising at 6% annually.
   2. A popular investment strategy that your firm uses has produced an annualized rate of return of 8.25% over the past 25 years.