A student is planning to attend college in August 2029; he plans to create a fund that will pay for his 4 years of college. The current cost to attend college for the acadmaic year 2014 - 2015 is $35,000 per year. the expeanses have been steadily rising 6.125% each year. The college will nicely allow the 4 years of expenses to paid in full when he starts college. If we assume he can earn 8.4% per annum compunded monthly on his investment, how much does he need to save per month to cover the college expenses if he plans to start investing in January 2015?

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Predicting the cost of college in 2029 is difficult due to several factors including inflation chang... View the full answer