Given the following scenario: Inflation rate for tuition is 6% Return on investment is 5% Current...
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Given the following scenario: Inflation rate for tuition is 6% Return on investment is 5% Current tuition costs are $25,000 per year, child is 8 and will attend at age 18 $20,000 has already been saved by the parents How much addition funds would you require today to fully fund this education? Show all your work. What key factor in this calculation is likely to change, for which you have no control? Given the following scenario: Inflation rate for tuition is 6% Return on investment is 5% Current tuition costs are $25,000 per year, child is 8 and will attend at age 18 $20,000 has already been saved by the parents How much addition funds would you require today to fully fund this education? Show all your work. What key factor in this calculation is likely to change, for which you have no control?
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To calculate the additional funds required to fully fund the education we can use the future value f... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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