Problem 3. Paying for School Your daughter will start college one year from toda

Question

Problem 3. Paying for School Your daughter will start college one year from today, at which time the first tuition payment of $58,000 must be made. Assuming that tuition does not increase over time and that your daughter remains in school for four years, how much money do you need today in your savings account, earning 5% per annum, in order to make the tuition payments over the next four years ? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Explanation / Answer

Assuming yearly payment is required Total Money Required= 58000x3= 174000 Money Required for Investment= 157948.39

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