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please show formula from excel North West Sr. is creating a college fund for his two kids, South and J-C, ages 5 and 3, respectively.
please show formula from excel
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% cach 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 account to pay for tuition once the kids are in college. Moreover, look out for the years when they are both in school) Deposit Amount $8.656.37 Interest Rate College Cost This Year Cost Growth Rate Contribution Growth Rate Value of Last Contribution 3.7% $25.000 5.0% % 8.0% Tuition Costs South's Age S Deposits Balance J-C's Age 3 4 9 Year 0 1 1 2 2 3 4 5 S 7 & 9 5 6 7 7 8 9 10 6 7 8 9 10 11 12 13 14 10 11 12 13 14 IS 16 17 18 19 11 12 13 14 15 16 17 18 19 20 21 15 16 17 18 20 21 22 23 Check Point: West Sr. refuses to leave any money on the table so his account balance should go to zero if all your calculations are correctStep by Step Solution
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