What rate of return will you use to make calculation

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Reference no: EM131944497

Save for your child’s college tuition! Consider the following parameters: Your daughter is a three-year old She is going to college at age 18 You make $50,000 annually (the current median income in the U.S.). Your spouse also earns this amount. There is no other source of funding. (In other words, you have no additional help from family members, and there are no scholarships available in the future.) Ignore taxes for now. Estimate each input for the time value of money equation: present value, future value, rate, and number of periods. In order to make reasonable estimates, ask yourself the following questions: How much can you afford to invest today? How much will college cost in 18 years? Will you be saving for private or public? What rate of return will you use to make this calculation?

Reference no: EM131944497

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