Calculate the approximate monthly amount to invest at the beginning of the period. Round the final answer to two decimals. Please note that intermediate steps should be calculated to at least 4 decimals to get the answer correctly.

Assume the following information for your client

Step
1	Child's AGE	4
2	Years to college	18-(Step 1)
3	Annual College Costs (current dollars)	$51,917
4	Assumed College Inflation rate	4.0%
5	College Inflation Factor. Calculate as (1+Step 4)^(Step 2)	(1+Step 4)^(Step 2)
6	Estimate Future Annual Costs Calculate as	(Step 3* Step 5) or use FV formula in Excel or financial calculator
7	Estimated Total Future Costs (Step 6*) years in college 4	Step 6*years in college
	Funding requirements
8	Assumed after-tax return	14.9%
9	PV Factor	1/(1+Step 8)^Step 2
10	Total Lump-Sum Investment Currently Required	Step 7*Step 9 or use PV formula in Excel or financial calculator
11	Amount already earmarked for education	$21,305
12	Additional Limp-Sum funding required	Step 10-Step 11
13	Years of funding	4
14	PVIFA Due	Move to Step 15 to use Excel or a financial calculator
15	Annual target amount to invest	(Step 12*Step 14) or use the formula PMT in Excel or a financial calculator
16	The approximate monthly amount to invest	(Step 15)/12 months

Answer rating: 100% (QA)

Step 1 Childs Age 4 Step 2 Years to college 18Step 1 184 14 Step 3 Annual College Costs current doll... View the full answer