Start saving for college tuition

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Reference no: EM131012059

Today is January 31, 2016. A woman decides that she is going to start saving for her child’s college tuition. Starting immediately (i.e., February 1, 2016), and continuing on the 1st day of each month thereafter until February 1, 2034, she decides to contribute $200 per month in an account that will yield 5% interest.

a. How much will the child have for college after the woman makes her last deposit on February 1, 2034? b. Assume the child will need $150,000 to attend college without incurring any debt in 2034. How much will the woman have to contribute each month to reach that goal?

Reference no: EM131012059

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