my daughter, Jennifer, will start college in five years. She has just informed me that she wants to go to Eastern State U., which will cost $18,000 per year for four years (cost I assume to come at the end of each year). Anticipating Jennifer's ambitions, I started investing $3,000 per year five years ago and will continue to do so for five more years.
How much more will I have to invest each year for the next five years to have the necessary funds for Jennifer's education? My interest rate is 10 percent. thank you .
2006-09-14 07:59:08 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
First of all, college tuition is generally due at the start of each semester (or within a few weeks of it, if the college lets you make payments). So you have less time than you think.
If you plan to cover the entire cost of her education, you need to save another $8000 a year. ($11000 total per year)
However, before you freak out over that sum...look into financial aid, both as federal grants and student loans. (Both parents and students can get them)
And how the heck do you get a 10% interest rate anywhere?
2006-09-14 08:09:38 · answer #1 · answered by physicsmom04 3 · 0⤊ 0⤋
Well Im not totally sure but by the time five years pass her tuition could be over $20,000. Each year college tuition has risen. Did you make sure that tuition also included room/board? Dont forget meal plans and books.
2006-09-14 08:03:21 · answer #2 · answered by . 6 · 0⤊ 0⤋
I truthfully think of giving it to them now would be a mistake. you probably did properly elevating them. If the money is of their names, you're legally obligated to furnish them the money. If no longer, you will desire to shop it for now. you with the help of no potential be attentive to what the destiny holds for you, them, or the grandkids. enable it build wealth into the destiny. And, by no potential provide childrens huge chunks on their wedding ceremony day! you will desire to attend till a minimum of the 1st anniversary. i like the belief of saving for the grandkids education. keep in mind, the fee of long term care is extensive, and you would be doing all your daughters a choose making constructive you have an outstanding variety of money to pay on your very own senior years, and elder care. this may be merely what's the clever ingredient to do which may make the golden years extremely specific, and not a burden on your daughters and their families in case you decide on care once you're contained in the geriatric years.
2016-09-30 23:07:13 · answer #3 · answered by ? 4 · 0⤊ 0⤋
hopefully daughter Jen is smart and will get some sort of Grant and schoolarship to ESU.
2 years before college, apply to as many Grants that are available.
2006-09-14 09:48:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋