Question
The Turners have 8 years to save a lump-sum amount for their child's college education. Today a four-year college education costs $60,000, and this is
The Turners have
8
years to save a
lump-sum
amount for their child's college education. Today a four-year college education costs
$60,000,
and this is expected to increase by
9%
per year into the foreseeable future.a. If the Turners can earn
5%
per year on a conservative investment in a highly rated tax-free municipal bond, how much money must they save each year for the next
8
years to afford to send their child to college?b. If a certain college will "freeze" the cost of education in
8
years for a lump-sum of
$190,000,
is this a good deal?
a. The Turners must save
$enter your response here
each year for the next
8
years. (Round to two decimal places.)
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