Homework Answers
Child 1 will be in college in 17 years. So, education cost for Child 1 = 25000*1.06^17 = 67,319.32 per year
Child 2 will be in college in 15 years. So, education cost of Child 2 = 25,000*1.06^15 = 59,913.95 per year
Child 3 will be in college in 13 years. So, education cost of Child 3 = 25,000*1.06^13 = 53,323.21 per year
Child 4 will be in college in 11 years. So, education cost of Child 4 = 25,000*1.06^11 = 47,457.46 per year
Present value of cost of college for all four children is 67,319.32*4/1.08^17 + 59,913.95*4 /1.08^15 + 53,323.21*4/1.08^13 + 47,457.46*4/1.08^11 = $308,168.90
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