Hayden is 13-years old and he has four years until he is planning on attending University or college. His parents have been saving $225 per month for his education in a RESP and it has a current balance of $40,000. They have been investing in a balanced portfolio of ETF's and they have been earning an average interest rate of 5%. The current cost of University is $12,000 per year for students that are going away to school. The cost of education has been increasing at a rate of 3% each year. Will Hayden's parents have saved enough to pay for the full amount of his education?

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To determine if Haydens parents will have saved enough to pay for the full amount of his education w... View the full answer