(Solved): You are planning on saving for your childs education and will use the Edvest College Savings Plan ...

You are planning on saving for your child’s education and will use the Edvest College Savings Planner.

Assume the following:

You are planning on saving for your child’s education. Assume the following:

• Age of child is 1; expect child to be 18 when starting college and will have 4 years of college
• Annual cost of college is $25,000 with inflation at 3%
• Planned savings $100 per month.
• Current savings balance is $0.
• Your anticipated rate of return is 6%.
• Percent of cost funded by you: 100%.
• Your state tax rate is 5%; Your federal tax rate is 22%.

Your projected contributions and earnings (account value) when the student starts college will be

Group of answer choices

$145,678

$218,431

$59,412

$35,887

$22,458