The Jacksons have asked you what would be needed to fund the children's future college costs. Assume each child will begin college at age 18 and graduate in four years. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%.

Assuming no existing assets are dedicated to college, what is the annual savings required to fund the children's education?

More information to help solve the problem:

Each Kid below is going to college at the age of 18 and will attend for 4 years only. 

They have two kids' "A" and "B"

1. Kid "A" is 14 years old and is in the 9th grade
2. Kid "B" is 9 years old and is in the 4th grade

Answer rating: 100% (QA)

Calculation of annual savings required to f... View the full answer