Calculate the college fund required to start a four year college program in 15 years time....

70.2K

Verified Solution

Question

Finance

Calculate the college fund required to start a four year collegeprogram in 15 years time. The tuition fees are currently 12,000 andare first payable at the start of year 16. Inflation is 4% and therate of return is 9%. Calculate the lump sum which needs to beinvested today to provide the college fund.

show all your works

Answer & Explanation Solved by verified expert
4.4 Ratings (564 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Calculate the college fund required to start a four year collegeprogram in 15 years time. The tuition fees are currently 12,000 andare first payable at the start of year 16. Inflation is 4% and therate of return is 9%. Calculate the lump sum which needs to beinvested today to provide the college fund.show all your works

Other questions asked by students