Asked by
Jerald Carasig
on Dec 20, 2024
Verified
Keith Stone has a 10-year-old daughter, Kate, who will be entering college in 8 years. Keith estimates college costs to be $16,000, $17,000, $18,000 and $19,000 payable at the beginning of each of Kate's four years in college. How much must Keith save each year (assume end of year payments) for each of the next 8 years to have enough savings to pay for Kate's education when she starts college? Assume Keith can earn 9% on his savings.
A) $5,569
B) $7,720
C) $5,108
D) $7,677
College Costs
The total amount of money required for a student to attend college, including tuition, room and board, books, and other related expenses.
Save Each Year
A financial strategy involving the allocation of a certain amount of income into savings or investments annually.
Earn
To receive money in return for labor or services provided, or as profit on investment.
- Estimate the requisite savings for accomplishing future financial targets.
Verified Answer
JP
Learning Objectives
- Estimate the requisite savings for accomplishing future financial targets.