You just had a child and want to put money away for their college education. The Institute for Higher Learning expects college expenses will be $100,000 a year in 20 years when you expect him to get a four year degree. The going rate of interest is 5%. How much will it cost you to buy an annuity today to fund you childs education? You just had a child and want to put money away for their college education. The Institute for Higher Learning expects college expenses will be $100,000 a year in 20 years when you expect him to get a four year degree. The going rate interest is 5%

How much will it cost you to buy an annuity today to fund you childs education?

$400,000

$133,640

$354,600

$329,000