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Pam opens college savings accounts for her children. She plans to save 15,000 each year for the next 10 years. Her son Marshall's tuition payments
Pam opens college savings accounts for her children. She plans to save 15,000 each year for the next 10 years. Her son Marshall's tuition payments will be $22,000 per year in years 11-14. Her daughter Judy's tuition payments will be $28,000 per year in years 1720. If the interest rate is 6% per year, will Pam's plan raise enough money to cover the tuition payments? How much extra will she have or how much short will she be as of year 10 when she makes her last deposit? Yes, $53,082.24 extra No, $24,456.64 short No, \$2,288.08 short Yes, $126,020.37 extra
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