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.

1) George and Jane want to make their last contribution to each childs 529 plan at the time Judy starts college. Based on the current 529 plan balances and monthly contributions, will they achieve this goal? Using calculations, show and explain your answer to the couple.