You are married and expecting your first baby soon. you want to start saving for college, but understand that college tuition is going to increase over time and you want to start saving now. based on today's tuition, a 4 year degree costs $179,000. you expect that inflation on tuition will run 3.2% per year and that it will be 18 years before you have to pay for the child's school. your parents (the grandparents) decide to contribute a total of $27,000 today to get the college fund started. you plan to invest this money in a stock mutual fund that historically earns 8.9% per year. you will also be saving money each year for the child's education. considering inflation and the money that the grandparents offer, how much more money per year do you need to invest (in the same mutual fund earning 8.9%) to be able to fully pay for the new child's tuition in the future?
A) $4,518.55
B) $5,134.67
C) $6,273.89
D) $7,182.00
