How much money will you need while your son goes to college

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Reference no: EM131444330

You are setting up a college fund for your soon who is going to college in 3 years. The tuition bill is $15,000 a year for four years. Assume the discount rate is 6%.

a. How much money will you need while your son goes to college?

b. What is the amount of money you need to put down as a lump su today to generate the figure in (a)?

c. Assume you are able to put some income aside every year to generate the amount in (a). How much shoud it be?

d. Compare (b) and (c). Conclude your finding.

Reference no: EM131444330

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