Step 1 Child's AGE 2 Years to college 3 Annual College Costs (current dollars) 4 Assumed...

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Step 1 Child's AGE 2 Years to college 3 Annual College Costs (current dollars) 4 Assumed College Inflation rate 5 College Inflation Factor. Calculate as (1+Step 4)^(Step 2) 6 Estimate Future Annual Costs Calculate as 7 Estimated Total Future Costs (Step 6*) years in college 4 Funding requirements 8 Assumed after-tax return 10 18-(Step 1) $49,686 6.9% (1+Step 4)^(Step 2) (Step 3* Step 5) or use FV formula in Excel or financial calculator Step 6*years in college 9 PV Factor 10 Total Lump-Sum Investment Currently Required 11 Amount already earmarked for education 12 Additional Limp-Sum funding required 13 Years of funding 14 PVIFA Due 15 Annual target amount to invest 16 Approximate monthly amount to invest 9.8% 1/(1+Step 8)^Step 2 Step 7*Step 9 or use PV formula in Excel or financial calculator $24,334 Step 10-Step 11 4 Move to Step 15 to use Excel or financial calculator (Step 12* Step 14) or use formula PMT in Excel or financial calculator (Step 15)/12 months Step 1 Child's AGE 2 Years to college 3 Annual College Costs (current dollars) 4 Assumed College Inflation rate 5 College Inflation Factor. Calculate as (1+Step 4)^(Step 2) 6 Estimate Future Annual Costs Calculate as 7 Estimated Total Future Costs (Step 6*) years in college 4 Funding requirements 8 Assumed after-tax return 10 18-(Step 1) $49,686 6.9% (1+Step 4)^(Step 2) (Step 3* Step 5) or use FV formula in Excel or financial calculator Step 6*years in college 9 PV Factor 10 Total Lump-Sum Investment Currently Required 11 Amount already earmarked for education 12 Additional Limp-Sum funding required 13 Years of funding 14 PVIFA Due 15 Annual target amount to invest 16 Approximate monthly amount to invest 9.8% 1/(1+Step 8)^Step 2 Step 7*Step 9 or use PV formula in Excel or financial calculator $24,334 Step 10-Step 11 4 Move to Step 15 to use Excel or financial calculator (Step 12* Step 14) or use formula PMT in Excel or financial calculator (Step 15)/12 months