Hank opens college savings accounts for his children. He plans to save 8,000 each year for...

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Hank opens college savings accounts for his children. He plans to save 8,000 each year for the next 10 years. His son Trent's tuition payments will be $25,000 per year in years 11-14. His daughter Ginny's tuition payments will be $30,000 per year in years 17-20. If the interest rate is 10% per year, will Hank's plan raise enough money to cover the tuition payments? How much extra will he have or how much short will he be as of year 10 when he makes his last deposit? Hank opens college savings accounts for his children. He plans to save 8,000 each year for the next 10 years. His son Trent's tuition payments will be $25,000 per year in years 11-14. His daughter Ginny's tuition payments will be $30,000 per year in years 17-20. If the interest rate is 10% per year, will Hank's plan raise enough money to cover the tuition payments? How much extra will he have or how much short will he be as of year 10 when he makes his last deposit?

Answer rating: 100% (QA)

Yes Hanks plan will raise enough money to cover the tuition payments A... View the full answer