Stephanie and Chip want to fund their 8-year-old son Thornton s college education. The current cost of tuition is $10,000 per year and they expect it to increase 6% per year. They also anticipate earning 5% per year on their investments. Approximately how much do they need to save at the end of each month to fund five years of college for Thornton?
A. $581
B. $585
C. $588
D. $592
Kyle and Brooke want to fund their 4-year-old daughter Amanda s college education. The current cost of tuition is $15,000 per year and they expect it to increase 8% per year. They also anticipate earning 5% per year on their investments. Approximately how much do they need to contribute today to fund four years of college for Amanda?
A. $39,000
B. $54,000
C. $78,000
D. $93,000