Aaron wants to fund his 3-year-old son Isaacs college education. The current cost of tuition is $20,000 per year and he expects it to increase 9% per year. He also anticipates earning 8% per year on his investments. Approximately how much does Aaron need to contribute today to fund half of four years of college for Isaac?

A.

$43,000

B.$47,000

C$51,000

D.$54,000

Alex and Trinity want to fund their 3-year-old daughter Kims college education. The current cost of tuition is $10,000 per year and they expect it to increase 7% per year. They also anticipate earning 8% per year on their investments. Approximately how much do they need to contribute today to fund four years of college for Kim?

A.

$33,000

B.

$34,000

C.

$35,000

D.$36,000

Which of the following statements concerning Coverdell Education Savings Accounts is (are) correct?

I Contributions to the account are tax deductible.

II Contributions are limited to $2,000 per student in 2017

III Funds can be spent income tax free for K-12^th grade tuition

IV Funds can be spent income tax free for college tuition

A. I and III only

B.

II and IV only

C.

I, II, and IV only

D. II, III, and IV only

Kyle and Brooke want to fund their 4-year-old daughter Amandas college education. The current cost of tuition is $15,000 per year and they expect it to increase 8% per year. They also anticipate earning 5% per year on their investments. Approximately how much do they need to contribute today to fund four years of college for Amanda?

		A.$39,000
		B. $54,000
		C. $78,000
		D.$93,000

4.

Jordan purchased Series EE bonds to help pay for his childs education. In order to receive tax free treatment on the interest income, when does Jordans AGI need to be below the phase out threshold?

		A. At the time the bond was purchased
		B. At the time the bond is used to pay for college
		C. At the time the bond was purchased and at the time the bond is used to pay for college
		D. There are no AGI thresholds for tax free treatment of Series EE bond interest used for college