Question

Your first child is ready to head to college and you have saved some money to help her with living expenses. In total, you expect to assist your child with equal MONTHLY remittances for living expenses over the next 8 years through her undergraduate and graduate studies. At the moment, you have saved $59,000 and expect to continue to earn a return of 3.8% on your money as you assist your child. What is the largest amount, rounded to the nearest dollar, that you can send your child while making sure the saved funds last for all 8 years you expect her to be in college?

A. $724

B. $752

C. $701

D. $714

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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