Answered step by step
Verified Expert Solution
Question
1 Approved Answer
After meeting with their new financial planner, the Beckham family has decided to invest $800 each month into a 529 for their seven-year-old son, Oliver.
After meeting with their new financial planner, the Beckham family has decided to invest $800 each month into a 529 for their seven-year-old son, Oliver. The Beckhams expect Oliver to attend Southern State University. The current tuition is $25,000 per year, education inflation is expected to be 6.5%, and the anticipated rate of return on their 529 is 8%. Oliver will attend school beginning at 18 years old for four years. Using these facts, calculate to determine whether the current investment plan ($800 monthly deposits), will meet the education savings goal. A) Fall short of the goal by $27,324 B) Fall short of the goal by $42,152 C) Exceed the goal by $111,554 D) Exceed the goal by $107,286
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started