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A friend with a newborn is wondering how much to contribute to a 529 plan to help fund college for the child in 18 years.
A friend with a newborn is wondering how much to contribute to a 529 plan to help fund college for the child in 18 years. She wants to have $125,000 in the account to help pay for the childs four years of college. You believe the fund can earn 7% annually and that inflation will average 3%. How much must be contributed at the end of each year to fund this account? A. $6,900. B. $3,680. C. $2,980. D. $4,050. E. $5,340.
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