Goals and Concerns Want to know cost of college education for their child so they can approach Mrs Howes father about funding a 529 plan. Current cost of education $20K in todays dollars with expected 5% inflation. Expect the child to be in school six years and expect rate of return 8.5%

Given this information that was provided, how can I calculate FV/PV/PMT for parts a - c?

5. Education and Education Funding Calculate the present value of education (college starts at the age of 18) using an investment rate of return of 8.5% assume 5 years of education 5% education inflation. Assume the annual payments will be made for 15 years. a. FV of education - Funds needed in todays dollars b. PV of education costs - Funds needed upon entering college c. How much per year will the Howe's need to save for their child's education, annual savings required