Zoe and Zach, IU graduates who are now happily married are expecting their first child, due any moment. Zoe and Zach are responsible new parents and anticipate that their child will someday want to be a Hoosier too. They also know that college tuition is going to continue to rise over time and so they want to start saving for their new child's education now.

Based on today's tuition, a 4 year degree from IU costs $163,000. They expect that inflation on IU tuition will run 4.2% per year and that it will be 18 years before they have to pay for their child's school.

In the excitement, Zack and Zoe's parents (proud soon-to-be grandparents) decide to contribute a total of $22,000 today to get the college fund started. Zach and Zoe plan to invest this money into a stock mutual fund that historically earns 8.3% per year. Zoe and Zach will also be saving money each year for their child's education.

Considering inflation and the money that the grandparents offer, how much more money per year does the couple need to invest ( in the same mutual fund earning 8.3%) to be able to fully pay for their new child's IU tuition in the future ?