Challenging Time Value of Money Problem, James Tompkins

This is an "Understanding Finance Nugget" in which I do a challenging time value of money problem. In fact, if you can do this problem, in my opinion you have an in-depth understanding (not memorization) of this topic. If this does not make complete sense I recommend in order that you watch my two lectures: "Time Value of Money: Single Cash Flows, James Tompkins" and "Time Value of Money: Multiple Cash Flows, James Tompkins".

[@Clifffffffffford]

Thanks!

[@sanatbharati4568]

why didnt you multiply with (1+0.0404) when calculating PV of annuity of her college fee.. It's an beginning annuity it should be added or what. Since you multiply with (1+0.00662) when calculating PV of annuity of her saving