1. What is the impact of the higher interest rate of 7% on the Sampsons' accumulated savings?
2. What is the impact of the higher savings of $4,800 on their accumulated savings?
3. If the Sampsons set a goal to save $70,000 for their children's college education in 12 years, how would you determine the yearly savings necessary to achieve this goal? How much would they have to save by the end of each year to achieve this goal, assuming a 5% annual interest rate?
| Calculator: Savings Needed Each Year |
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| Future Value |
$70,000 |
| Interest Rate |
5% |
| Years |
12 |
| Savings Needed Each Year |
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