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Terri would like to know if she has enough money to pay for her first year of college which she anticipates will be $32,000 five

Terri would like to know if she has enough money to pay for her first year of college which she anticipates will be $32,000 five years from now as education inflation has been running about 4.2%. She feels she can earn 7.8% on her assets. What lump-sum does she need today?

Answers:

A. $21,981

B. $26,000

C. $27,002

D. $38,083

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