1. Your neighbors have heard that you are studying finance and have asked for your help planning for their sons college . They estimate that tuition will be $35, 000 the first year, and that tuition will grow at 3.500% annually. They estimate it will take him 5 years to complete his undergraduate degree. They would also like to buy him a used car a year before he starts college. They estimate that the car will cost 25,000. How much must your neighbors deposit today, assuming an interest rate of 6%, in order to send their grandson to college and provide him with the used car? He will start college in three years.