A client's child will be attending college in 4 years. Assume current tuition and fees are $39,619, and inflation for college costs averages 3.9 percent, and she can earn 7.7 percent on the money she invests for this purpose. The client wants to know how much she will need to set aside today to pay four years of tuition and fees.

 

Max estimated a minimum need of $169,000 for college education fund for his son in 10 years when his son will start college. Assume that after-tax rate of return that Max is able to earn from his investment is 9.94 percent compounded annually. Max has already earmarked $15,757 for his son education. What would be his current deficit to finance his son education?

Round the answer to two decimal places.

Answer rating: 100% (QA)

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