How much will be able to pay annually for each of daughter

Reference no: EM13224707

You have two daughters, born two years apart. The difficulty of putting away money for their college educations precludes you from saving on a continuous basis for both. After reviewing your financial condition and projections, you think that the best you can do is to put away $2,500/year for 10 years for daughter #2. After that time daughter #1 will begin college and your surplus cash flow will be devoted to paying her tuition and rooming costs, leaving nothing to put aside for daughter #2, who will start college 2 years later. Assuming a 7% average return over this entire period, how much will you be able to pay annually for each of daughter #2's (anticipated) 4 years in college?

Reference no: EM13224707

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