Johnny and June would like to begin saving for their children's college education. They have two kids, ages 5 and 7. Each child will begin college at 18 and attend a private university for four years. Tuition is currently $20,000 per year and is increasing at 4% per year. They can earn an after-tax rate of return of 9%. How much must they save at the end of each year if they would like to make the last payment at the beginning of their youngest child's last year of college?

Answer rating: 100% (QA)

To calculate the amount Johnny and June must save each year we need to take into consideration the f... View the full answer