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Simplified College Cost Worksheet Calculate approximate monthly amount to invest at the beginning of the period . Round the final answer to two decimals. Please

Simplified College Cost Worksheet

Calculate approximate monthly amount to invest at the beginning of the period. Round the final answer to two decimals. Please note that intermediate steps should be calculated to at least 4 decimals to get the answer correctly.

Assume the following information for your client

Step
1 Child's AGE 6
2 Years to college 18-(Step 1)
3 Annual College Costs (current dollars) $54,299
4 Assumed College Inflation rate 3.1%
5 College Inflation Factor. Calculate as (1+Step 4)^(Step 2) (1+Step 4)^(Step 2)
6 Estimate Future Annual Costs Calculate as (Step 3* Step 5) or use FV formula in Excel or financial calculator
7 Estimated Total Future Costs (Step 6*) years in college 4 Step 6*years in college
Funding requirements
8 Assumed after-tax return 12.9%
9 PV Factor 1/(1+Step 8)^Step 2
10 Total Lump-Sum Investment Currently Required Step 7*Step 9 or use PV formula in Excel or financial calculator
11 Amount already earmarked for education $21,968
12 Additional Limp-Sum funding required Step 10-Step 11
13 Years of funding 7
14 PVIFA Due Move to Step 15 to use Excel or financial calculator
15 Annual target amount to invest (Step 12*Step 14) or use formula PMT in Excel or financial calculator
16 Approximate monthly amount to invest (Step 15)/12 months

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