Ahmad just had his first baby, he want to plan for his baby life, he want to enroll him in international school by the end of his 7th year, the baby will be at that school for 12 years, each year he will need $50000 per year for fees and $2000 monthly expense. Then he wants to send him to study in ZZZ university, the fees which include the cost of living is $150,000 per year, and he will be studying there for 5 years. After that he want to create a fund which will provide $25,000 every year forever.
How much Ahmad should invest for the first 7 years (equal payments) to secure this plan if you know that he can earn 11% on his investment in the first 7 year, and 13 in the after 17 year (school and university), and 9% for the perpetuity.

Answer rating: 100% (QA)

Annual Equal payments in first 7 years to secure Childs future is 7048128 Stepbystep explanat... View the full answer