Amy is 12 years old now and will attend college at age 18.

Amy is 12 years old now and will attend college at age 18. Her parents plan to fund her college for four years. College costs $20,000 per year today. If her parents have saved $10,000 for this goal. Assume they can invest for 10% per year and inflation is 3.5% per year compounding annually.

What’s PV of Amy’s needs?

2 points

Amy is 12 years old now and will attend college at age 18. Her parents plan to fund her college for four years. College costs $20,000 per year today. Her parents have saved $10,000 for this goal, Assume they can invest for 10% per year and inflation is 3.5% per year compounding annually.

What's the future value of what Amy's parents currently save?

Amy is 12 years old now and will attend college at age 18. Her parents plan to fund her college for four years. College costs $20,000 per year today. If her parents have saved $10,000 for this goal, how much more do they need to save at the end of each month in order to be able to fully fund her four-year college? Assume they can invest for 10% per year and inflation is 3.5% per year compounding annually.