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What is the amount they need to save annually

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Bill and Jane are working with a financial planner to determine the amount they need to save each year for their two children for college. They believe they can earn 8% a year on their portfolio, and know that currently the in-state public school costs $35,000 a year. However, they do have reason to believe that tuition will increase at 1.5% a year in costs. Assuming they have $10,000 set aside for each child, and their children are ages 10 and 6, and will go to school for 4 years each beginning at age 18, what is the amount they need to save annually?

Reference no: EM132484887

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