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Tom and Mary James just had a baby. They heard that the cost of providing a college education for this baby will be $100,000 in

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Tom and Mary James just had a baby. They heard that the cost of providing a college education for this baby will be $100,000 in 18 years. Tom normally receives a Christmas bonus of $4.000 every year in the paycheck prior to Christmas. He read that a good stock mutual fund should pay him an average of 10 percent per year. Tom and Mary want to make sure their son has $100,000 for college. Consider each of the following questions. a. How much does Tom have to invest in this mutual fund at the end of each year to have $100,000 in 18 years? Tom's father said he would provide for his grandson's education. He puts $10,000 in a government bond that pays 3 percent interest. His dad said this should be enough. Do you agree? c. If Mary has a savings account worth $50,000, how much must she withdraw from savings and set aside in this mutual fund to have the $100,000 for her son's education in 18 years

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