Max estimated a minimum need of $226,000 for college education fund for his son in 13 years
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Question:
Max estimated a minimum need of $226,000 for college education fund for his son in 13 years when his son will start college. Assume that after-tax rate of return that Max is able to earn from his investment is 7.72 percent compounded annually. Max has already earmarked $24,620 for his son education. What would be his current deficit to finance his son education?
He is going to invest additional amounts each year at the beginning of the year until his son starts college. Compute the annual beginning of-the- year payment that is necessary to fund the current deficit.
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