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Use the information below to answer question 23 - 25: Tuition at Winhill University, a 4-year college, is currently $20,000 per year. The current inflation
Use the information below to answer question 23 - 25: Tuition at Winhill University, a 4-year college, is currently $20,000 per year. The current inflation rate for tuition is 3% per year. Laguna has a 12-year-old son who will attend Winhill University at age 18. His annual return on investment is 6%. What is the total cost of education at the time the child begins college (at age 18)? $71,783 $91,545 $79,923 $84,171 Question 24 (8 points) Assume that the answer to the above question (question #23) is $100,000. What is the total cost of college today (when Laguna's son is 12 years old)? $80,501 $70,496 $60,511 $50,174 Question 25 (8 points) Assume that the answer to the above question (question #24) is $65,000 and Laguna has already saved $25,000 for his son's education. How much should Laguna save at the end of each year for the next 6 years? $8,135 $7,111 $6,110 $9,709
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