Compound Interest, Balance Sheet, Profits, and Capitalization Table 1. Your only child will go to college 10 years from now. Your salary is $80,000 a year, and is expected to rise with inflation,...

Compound Interest, Balance Sheet, Profits, and Capitalization Table

1. Your only child will go to college 10 years from now. Your salary is $80,000 a year, and is expected to rise with inflation, which is about 3% annually. Tuition is currently about $40,000 a year, but growing by 5% yearly. What percentage of your salary would go to pay for the first year of your child's college education?