Question

A child born today will attend college in 18 years. College expenses today are around $10,000 for tuition (expected to grow at 5 percent annually) and $12,000 for other expenses (expected to grow at 3 percent annually). Use excel to find the total amount expected for college expenses. Provide a column for labels and excel's functions, as well as a column for the numeric values.

Answer 1

College expenses today = $10,000

Growth rate of college expenses = 5%

Other expenses today = $12,000

Growth rate of other expenses = 3%

College expenses in 18 years = $24,066.19

Other expenses in 18 years = $20,429.20

Total amount = 24,066.19 + 20,429.20 = $44,495.39