Question
oe wants to start a savings plan to pay for his children's anticipated college educations. Based on current forecasts, Joe's expenditures on his elder daughter's
oe wants to start a savings plan to pay for his children's anticipated college educations. Based on current forecasts, Joe's expenditures on his elder daughter's college education will be $36000 per year, with cash flows occurring 16, 17, 18, and 19 years from now. Based on current forecasts, Joe's expenditures on his younger daughter's college education will be $42000 per year, with cash flows occurring 18, 19, 20, and 21 years from now. Joe plans to make 15 annual, end-of-year deposits into a college-savings account with the first deposit occurring one year from now. Use a rate of 5.00%/year in all of your time-value-of-money math.
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