Someone helps me with this. Thank you.
College tuition has been rising at a rate of 7% per year. Currently the average tuition of a state college is $9,500/year. Andrea’s son Trevor will begin college in 12 years. Andrea’s portfolio is making 5% annually. How much does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note:Tuition will continue to change annually and Andrea’s portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is due at the beginning of each year.)