Question: Your clients want help figuring out how much they need to save for their child's education. If your clients' child is currently 4 years old

 Your clients want help figuring out how much they need to

Your clients want help figuring out how much they need to save for their child's education. If your clients' child is currently 4 years old and will start college at 18 years of age, how much do they need to save at the end of each month to reach their goal? Assume the following: You estimate that a year of tuition in line with your clients' goal is $7,000 in today's dollars College expenses inflate at 4.4% per year Your clients can earn an annual rate of return of 8.8% on their investments while their child is in college Your clients want to help their child with 6 years of college Tuition is due in full at the beginning of each year of college

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!