Question
Create an Excel spreadsheet that addresses this situation. You should follow the best practices in Excel that we have been learning this semester. Your five-year-old
Create an Excel spreadsheet that addresses this situation. You should follow the best practices in Excel that we have been learning this semester.
Your five-year-old daughter has just started Kindergarten and has announced that she would like to attend college. At a 4-year school like MU, paying in-state tuition.
The College Board has reported that the average cost of tuition, room, board, and other expenses at public four-year colleges was $22,690 in the 20212022 academic year, up from $22,290 in the prior academic year of 2020-2021. This is for in-state students. You believe that you can earn a rate of 8% on investments to meet this goal.
If costs continue to rise at the current rate, how much will it cost for the first year of tuition in 2035?
Assuming that you plan to have enough money saved in 13 (?) years to cover all four years of college costs, how much will you need to have accumulated by that time? Note that the cost of tuition, room, and board is a growing annuity, and your annual growth forecast will be the growth from the last 2 Academic Years that we have data for (given above), and assume that you will pay all costs at the beginning of each year.
PLEASE ANSWER IN EXCEL AND SHOW ALL FORMULAS
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