4 Garyand Debra recently had their first child. They're excited about building their family together. Debra wants to begin a college savings fund for their child immediately, whereas Gary wants to wait a few years (he'd like to use their extra cash flow to buy a new minivan and some household items instead). Debra has identified a college savings plan that provides a relatively high rate of return for those who start saving early. The plan is set up so that over time the allocation of stocks in the plan falls as the child gets closer to college age and the allocation to bonds is increased. This means that the expected rate of return also falls over time. The rate of return figures Debra obtained from the savings plan follow Stock Fixed Income Expected Child Age Allocation Allocation Return 1 100% 0% 9.50% 2 95% 5% 9.10% 3 90% 10% 8.60% 85% 15% 8.00% 5 80% 20% 7.70% 6 75% 25% 7.10% 7 70% 30% 6.60%6 8 65% 35% 6.20% 60% 40% 5.60% 10 55% 45% 5,20% 11 50% 50% 4.90% 12 45%6 55% 4,40% 13 40% 60% 3.70% 14 35% 3.20% 30% 70% 2.9096 16 25% 75% 2.50% 17 20% 80% 1.90% 18 10% 90% 0.90% 9 M Qu Mur 65% 15 Que Mulig Ques Multi 1 If Debra can convince Gary to begin saving $3,500.00 per year for the next 18 years, how much will they have in the college savings plan when their child enters college? (Round answer to nearest whole number.) If they begin saving immediately, they will accumulate $ How much will they have in the plan if Gary prevails and they begin saving $3,500.00 per year when their child turns 5? (Round answer to nearest whole number.) If they wait to save until year 5, they will accumulates M Q Mu How much will they accumulate if they wait to begin saving until their child is 107 (Round answer to nearest whole number.) Que M If they wait to save until year 10, they will accumulate $ Ques Mum