University fees increase by 3% per year. Currently the average tuition fee for a public college is $14,300 per year. Andrea's son Trevor will start college in 12 years. Andrea's portfolio earns 6% per year. 

How much does Andrea need to set aside today/now to pay Trevor his 4 years of college fees? (Note: Tuition will continue to change each year and Andrea's portfolio balance will continue to accrue while Trevor is in school. Tuition is also due at the beginning of each year.)

Answer rating: 100% (QA)

To calculate the amount that Andrea needs to set aside today to pay Trevors college fees we need to ... View the full answer