Three-Step Education Funding Calculation (Step 3+ Lump Sum Saving, Level Payment, Serial Payment)

I'll solve the following problem in 4 different videos. Three-Step Education Funding Calculation: Step 1: Alison and Brian have a-three-year old daughter, Addy. Assume that one year’s college tuition is $10,000 today, education inflation is 6%. How much will they need for Addy’s freshman tuition in 15 years from today? Answer is: $23,966 Step 2: How much the total amount do Alison and Brian need to have saved by the time Addy starts college in order to pay for all 4 years of his college tuition if tuition inflation remains at 6% and their investments earn 8%? Answer is: $93,233 Step 3: How much do Alison and Brian need to save at the end of each month from today to have the funds needed when Addy starts school to pay for all 4 years college tuition if they earn 8% on their investments? Answer is: $269 per month Step 3+ You may also want to know: a. How much a lump sum do they need to save today? Answer: $29,390 b. How much do they need to save at the end of each year for 15 years? Answer: $3,433 per year c. How much do they need to save at the end of each year with adjusting inflation every year? Answer: $2,405 for first year payment