You are 20 years old and anitcipate you will have your first child when you are 25
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You are 20 years old and anitcipate you will have your first child when you are 25 years old. At 25 years old, you want to save at the end of each month for the next 18 years. You anticipate that when your child goes to college, tuition room and board to be paid at the beginning of each year will cost $20,000. Education inflation is expected to be at 4% each year. If you can earn 8.5% on investments from when you are 25 years until your child completes college and you put $2,000 down at 25 years old as you start investing, how much money in real dollars do you have to save to achieve this goal accounting for education inflation?
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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