1. Tuition at the Home State University, a 4-year college, is currently $10,000 per year. Inflation rate for tuition is 6% per year and the annual investment return is 8%. The child is 8 years old and will attend the Home State University at age 18. The parents have not saved anything for their childs education. Show your work

1. What is the estimated total future costs (tuitions for 4 years)?
2. What is the current funding shortfall?
3. How much must the parents save at the end of each year if they start to save today?