Question
Johnson family has found that the current cost of attending college is $27,000 per year. How much lump sum amount they should have in their
Johnson family has found that the current cost of attending college is $27,000 per year. How much lump sum amount they should have in their education account so that the 4 years of college is funded? Assume education inflation to be 6.25% and investment return to be 7% per year.
A. $105,353
B. $106,870
C. $107,550
D. $106,121
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
