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Determine what the education cost will be for this child

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A couple expects their child to go to a post secondary institution for 2 years when he reaches the age of 18 at a cost of $7500 per year in todays dollars. Currently the child is 15. Their advisor has cautioned them that education costs are rising rapidly and suggests using an inflation rate of 7% to calculate the savings required to meet the couples goal. The current inflation rate is 2%. The expected rate on a conservative portfolio is 3%.

Can someone (using calculator method) help determine what the education cost will be for this child when they turn 18 in todays dollars?

Reference no: EM132062344

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