Peter wants to save some money for his daughter Gwen's education. Tuition costs $12,500 per year in
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Peter wants to save some money for his daughter Gwen's education. Tuition costs
$12,500 per year in today’s dollars. His daughter was born today and will go to school starting at age 18.
She will go to school for 4 years. Peter can earn 11% on his investments and tuition inflation is 7%. How much must Peter save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college?
a. $2,094.90.
b. $2,789.04.
c. $3,167.33.
d. $3,176.43.
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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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