Reference no: EM132462480

Kitty is planning for her two children's college education. Her son will go to college 6 years from today and will require $20,000, $25,000, $30,000, and $35,000 at the beginning of each year in school. Her daughter will go to college 8 years from today and will require $30,000, $35,000, $40,000, and $45,000 at the beginning of each year in school. If Kitty will receive a lump-sum payment of $100,000 in 6 years from an investment which she will also use it to meet this obligation,

Question 1: What is the equal annual amount she must invest at the end of each of the next 6 years to provide sufficient money for her children's college education? Assume Kitty can earn 8% on her investment.