Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

35. In about 25 years, you're going to have a kid that wants to go to college. Assume that it cost $80,000 to put a

35. In about 25 years, you're going to have a kid that wants to go to college. Assume that it cost $80,000 to put a kid through college today. Assume also that college tuition will rise at exactly the rate of inflation* (an average annual rate of, say, 5%). It will cost you $279,908.39 to put your kid through college. If you could get an average annual return of 7% on an investment, how much money would you need to deposit each year to reach your goal by the time your kid is ready to go to college

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

6th Edition

8120321014, 978-8120321014

More Books

Students also viewed these Finance questions

Question

Brief Exercise 11-12 when amount is entered. Do not Credit

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago