College tuition has been rising at a rate of 3% per year. Currently the average tuition of a state college is $14,300 per year. Andrea's son Trevor will begin college in 12 years. Andrea's portfolio is making 6% annually. How much does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note: Tuition will continue to change annually and Andrea's portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is due at the beginning of each year.) $36,786.09 $38,841.24 $57,200.00 $36,642.68
College tuition has been rising at a rate of 3% per year. Currently the average tuition of a state college is $14,300 per year. Andrea's son Trevor will begin college in 12 years. Andrea's portfolio is making 6% annually. How much does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note: Tuition will continue to change annually and Andrea's portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is due at the beginning of each year.) $36,786.09 $38,841.24 $57,200.00 $36,642.68
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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College tuition has been rising at a rate of 3% per year. Currently the average tuition of a state college is $14,300 per year. Andrea's son Trevor will begin college in 12 years. Andrea's portfolio is making 6% annually. How much does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note: Tuition will continue to change annually and Andrea's portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is due at the beginning of each year.)
$36,786.09
$38,841.24
$57,200.00
$36,642.68
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