Children: Judy (age 9) and Elroy (age 5)

Judy has a 529 Plan with a balance of $23,500

Elroy has a 529 Plan with a balance of $12,000

$150/month is being contributed to each childs 529 plan.

Expectations

Both Judy and Elroy will go to Galaxy University. Currently, one year of tuition is $13,200 and they expect to pay for 5 years of school per child. The Jetsons believe the cost of tuition will increase at a rate of 6% per year until the time both children graduate. The Jetsons expect inflation to average 3% per year during their lifetime.

A) Calculate the cost of Judys education at Galaxy University.

B) Calculate the cost of Elroys education at Galaxy University.