They need to save at the end of each month to fund five year

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Reference no: EM131931828

Stephanie and Chip want to fund their 8-year-old son Thornton s college education. The current cost of tuition is $10,000 per year and they expect it to increase 6% per year. They also anticipate earning 5% per year on their investments. Approximately how much do they need to save at the end of each month to fund five years of college for Thornton?

A. $581

B. $585

C. $588

D. $592

Kyle and Brooke want to fund their 4-year-old daughter Amanda s college education. The current cost of tuition is $15,000 per year and they expect it to increase 8% per year. They also anticipate earning 5% per year on their investments. Approximately how much do they need to contribute today to fund four years of college for Amanda?

A. $39,000

B. $54,000

C. $78,000

D. $93,000

Reference no: EM131931828

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