How much has your client accumulated on college fund


Problem

Your client has been accumulating money on college fund for years to be able to pay for his son's education. This year his son is accepted to college and he might continue his education after graduation. Leaving aside issues of inflation and annual increase in the cost of tuition and fees, the funds would last 6 years with equal semi-annual beginning-of-the-period payments of $47,898 each, with the first payment to be made today. If the annual interest rate is 12.51 percent compounded semi-annually, how much has your client accumulated on college fund?

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Finance Basics: How much has your client accumulated on college fund
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