Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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  1. Assume the couple John and Helen want to fund a college education for their son, William, age 2. William will attend college starting at age of 18. He needs $90,000 available at age 18 for his college expense.  The couple feels they can make 6% after-tax return annually in a 529 education fund.  How much do they need to deposit today to meet their goal?  

 

  1. Assume the couple John and Helen want to fund a college education for their son, William, age 2. William will attend 4 years of college starting at age of 18. He needs $60,000 available at age 18 for his college expense.   Starting from now, the couple plans to invest $3000 to the 529 education fund at the end of each year.  What rate of annual return do they need to achieve?    
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