Explore BrainMass

Present Value Analysis

You just became a parent yesterday and you have suddenly realized that you will need to start saving money to send your child to college. After doing some research on the internet, you estimate that a four year college will cost $50,000 per year.

How much money would you need to put into your child's investment account today?

How much money would you need to put aside annually for 18 years to save the same amount?

All four years will be paid in advance.

Solution Preview


I hope you are doing great. Please find my response below. I have done my best to answer your question to the best of my ability. I hope you find the response excellent. Thanks and good luck.

Again, I'll use the Excel formulas ...

Solution Summary

The solution answers the question below in great detail.