Question
Your Son, Timmy will start college in five years. he has just informed you he wants to go to South side University, which will cost
Your Son, Timmy will start college in five years. he has just informed you he wants to go to South side University, which will cost $45,000 per year for four years (assumed to come at the end of each year). Anticipating Timmy ambitions, you started investing $6,500 per year five years ago and will continue to do so for five more years. Use 9 percent as the appropriate interest rate throughout this problem (for discounting or compounding). How much more will you have to invest each year for the next five years to have the necessary funds for Timmys dreams?
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