Available to pay for their? child college education

Assignment Help Financial Management

Reference no: EM131618677

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their? child's college education. Currently, college? tuition, books,? fees, and other costs average $12,400 per year. On? average, tuition and other costs have historically increased at a rate of 5?% per year. Assuming that college costs continue to increase an average of 5?% per year and that all her college savings are invested in an account paying 9?% ?interest, then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest? to:

A. $79,070

B. $56,479

C. $112,957

D. $135,548

Reference no: EM131618677

Questions Cloud

Cost of leasing the laptop over buying it? outright : What is the cost of leasing the laptop over buying it? outright?

Starting one month from now at an interest rate : You are borrowing money to buy a car. If you can make payments of $340 per month starting one month from now at an interest rate of 12?%,

What is the present value? of this? donation : What is the present value? (PV) of this? donation, given that the interest rate is 9?%?

Accounts has the highest? ear : Which of the following accounts has the highest? EAR?

Available to pay for their? child college education : Suppose that young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their? child's college education.

Howard is saving for long holiday : Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 12.7?%.

The higher the corporate income tax rate : The higher the corporate income tax rate, the lower the effective cost of

How long will it take him to pay off his credit card debt : If he rolls over his debt onto this card and makes the same monthly payment as before, how long will it take him to pay off his credit card debt?

How much is the outstanding principal balance on his loan : After he has made the first 20 payments, how much is the outstanding principal balance on his loan?

User Account

All Pages