Lanie is a single mom who has 3 children, ages 1, 5 and 9. While she is struggling a bit, she would like to pay for half

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answerhappygod
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Lanie is a single mom who has 3 children, ages 1, 5 and 9. While she is struggling a bit, she would like to pay for half

Post by answerhappygod »

Lanie is a single mom who has 3 children, ages 1, 5 and 9. While
she is struggling a bit, she would like to pay for half of their
education at a public college. Her children will go to college at
age 18 and be in college for 4 years. The annual cost of education
is currently $15,000 and has been increasing at 6% and is expected
to continue. Her portfolio that was established for education has
$10,000 in it and earns an average rate of return of 9%. If she
would like to fund half of four years of college for each of the
children, how much must she save each year at the end of the year,
for the next nine years (round to the nearest $100)?
$6,800
$8,400.
$10,700.
$11,800.
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