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North West Sr. is creating a college fund for his two kids, South and J-C, ages 5 and 3, respectively. To take over the fashion
North West Sr. is creating a college fund for his two kids, South and J-C, ages 5 and 3, respectively. To take over the fashion Empire, they will start college at 18 years old. Today, Harford University of Fashion costs $25,000, per student, and this cost is expected to increase by 5% each year. West Sr. plans to make 19 annual contributions to the college fund, and he plans to increase the contributions by 8% each year to combat inflation. The first contribution of $8,656.37 will be made today. The last disbursement from the college fund will be on J-C's 21st birthday. On that day, also, the last payment must be made for his last year of college. As West Sr's investor, you promised he will earn 3.7% return on his contributions. Using the above information, fill in the Table below. (Useful Hint: You will need to draw-down on the college fund acccount to pay for tuition once the kids are in college. Moreover, look out for the years when they are both in school)
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