Question
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
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?
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