Suppose you plan for your 6 year-old child to go to college starting at age 18. You think the college costs will be $20,000/year for 4 years when the time comes. You expect an average 4% annual after-tax return on your savings for your planning horizon. Ignoring inflation, what is the constant amount you should you save each year in order to reach your goal? To simplify, assume you want the full amount on hand when the child starts college, and that the full $20,000/year will be paid at the beginning of each school year. Assume your account will continue earning the 4% return as you draw down the $20,000/year. More challenging: Solve the same problem, except assume that college costs are expected to escalate with inflation by 5% per year. (Hint: Use the growth annuity formula in Chapter.