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You are planning on saving for your childs education and will use the Edvest College Savings Planner. Assume the following: You are planning on saving
You are planning on saving for your childs education and will use the Edvest College Savings Planner.
Assume the following:
You are planning on saving for your childs education. Assume the following:
- Age of child is 1; expect child to be 18 when starting college and will have 4 years of college
- Annual cost of college is $25,000 with inflation at 3%
- Planned savings $100 per month.
- Current savings balance is $0.
- Your anticipated rate of return is 6%.
- Percent of cost funded by you: 100%.
- Your state tax rate is 5%; Your federal tax rate is 22%.
Your projected contributions and earnings (account value) when the student starts college will be
Group of answer choices
$145,678
$218,431
$59,412
$35,887
$22,458
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