You have a couple who are 31 years old, and want to retire at the age of 67. Knowing that, the couple has a combined annual income of $95,000 today.

1. They are curious to find out if college costs $90,000 per year when their child gets into college in 19 years, how much is the total cost of a college education (that lasts for 4 years) in todays dollars if the cost of money is 8%? Assume you pay the tuitions at the beginning of each year and the annual tuition cost will grow at a 6% annual rate. [Hint: first compute the beginning value (at 19th year) of the tuition payment stream over the 4 year period]