# Its time to start saving for college. The current cost of a 4 year degree is $200,000.

Fantastic news! We've Found the answer you've been seeking!

## Question:

Its time to start saving for college. The current cost of a 4 year degree is $200,000. You expect an annual average inflation rate of 4% over the next 18 years. What will your sons college degree cost you in 18 years and, if you can earn an average of 8% annual interest on your investments.

**Required**

How much will you need to deposit each year to have enough money to pay for his education? (Round to the nearest dollar).

**Related Book For**

## Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart