A father is planning for his son (currently five years old) to attend college in 13...

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A father is planning for his son (currently five years old) to attend college in 13 years. The father expects that his son's tuition will be $35,000 per year for four years. The father can only save $2,900 per year (beginning today) for 13 years in a savings account that earns 10% annually. A financial advisor warns the father that these deposits will not be enough to fully fund his son's expected tuition expense. Assuming the son will make 4 equal withdrawals from the college fund beginning at age 18, how much in additional college funds will the son need to come up with each year? A father is planning for his son (currently five years old) to attend college in 13 years. The father expects that his son's tuition will be $35,000 per year for four years. The father can only save $2,900 per year (beginning today) for 13 years in a savings account that earns 10% annually. A financial advisor warns the father that these deposits will not be enough to fully fund his son's expected tuition expense. Assuming the son will make 4 equal withdrawals from the college fund beginning at age 18, how much in additional college funds will the son need to come up with each year?

Answer rating: 100% (QA)

Solution To calculate how much the fathers savings will grow over 13 years with an annual interest r... View the full answer