Lanie is a single mom who has 3 children, ages 1, 5 and 9. While she is
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Lanie is a single mom who has 3 children, ages 1, 5 and 9.
While she is struggling a bit, she would like to pay for half of their education at a public college. The annual cost of education is currently $20,000 and has been increasing at 6% and is expected to continue. Her portfolio that was established for education has $25,000 in it and earns an average rate of return of 8%. If she would like to fund half of four years of college for each of the children, how much must she save each year at the end of the year, for the next nine years (round to the nearest $100)?
a. $9,400.
b. $10,700.
c. $12,300:
d. $15,800.
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Related Book For
Fundamentals Of Financial Planning
ISBN: 9781936602094
3rd Edition
Authors: Michael A Dalton, Joseph Gillice
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