Solution-How much will the couple need at the end

How much will the couple need at the end

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Reference no: EM133015550

Question - A couple has just given birth to a baby and named him Jimmy. They want to set up a college savings account for Jimmy and start saving for his college education. The following facts will help you work this problem:

Current Cost of Tuition, Room & Board $25,000

Expected Average Inflation for College Costs 5%

Expected Average Percentage Return on Savings 4%

Years until you need the first tuition payment 18

You will make 18 yearly payments with the first payment starting a year from now.

How much will the couple need at the end of 18 years to fund Jimmy's college education for 4 years? Round your answer to a whole number.

Reference no: EM133015550

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How much will the couple need at the end

Reference no: EM133015550

Reference no: EM133015550

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