Simplified College Cost Worksheet

1) Calculate 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	7
2	Years to college	18-(Step 1)
3	Annual College Costs (current dollars)	$52,103
4	Assumed College Inflation rate	4.8%
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	10.6%
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	$24,580
12	Additional Limp-Sum funding required	Step 10-Step 11
13	Years of funding	8
14	PVIFA Due	Move to Step 15 to use Excel or financial calculator
15	Annual target amount to invest	(Step 12*Step 14) or use formula PMT in Excel or financial calculator
16	Approximate monthly amount to invest	(Step 15)/12 months

THE ANSWER IS $1,308.47 but don't know how that answer is given. Please help retrace the steps so I can better understand,

Repeat same steps for second question.

2) Calculate 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	3
2	Years to college	18-(Step 1)
3	Annual College Costs (current dollars)	$68,833
4	Assumed College Inflation rate	4.7%
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	13.4%
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	$24,582
12	Additional Limp-Sum funding required	Step 10-Step 11
13	Years of funding	8
14	PVIFA Due	Move to Step 15 to use Excel or financial calculator
15	Annual target amount to invest	(Step 12*Step 14) or use formula PMT in Excel or financial calculator
16	Approximate monthly amount to invest	(Step 15)/12 months