Question
Kyle and Brooke want to fund their 4-year-old daughter Amanda s college education. The current cost of tuition is $15,000 per year and they expect
Kyle and Brooke want to fund their 4-year-old daughter Amanda s college education. The current cost of tuition is $15,000 per year and they expect it to increase 8% per year. They also anticipate earning 5% per year on their investments. Approximately how much do they need to contribute today to fund four years of college for Amanda?
| A. | $39,000 | |
| B. | $54,000 | |
| C. | $78,000 | |
| D. | $93,000 |
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Performance Measurement In Finance
Authors: John Knight, Stephen Satchell, Nathalie Farah
1st Edition
0750650265, 978-0750650267
