Jacob and Sophia\'s dream for their recently born daughter, Emily, is that one d

Question

Jacob and Sophia's dream for their recently born daughter, Emily, is that one day she will attend their alma mater, Purdue University. For the next 18 years, they plan to make monthly payment deposits to a 529 College Saving Plan at a local bank. The account pays 5.25% annual interest, compounded monthly. Create a worksheet for a Jacob and Sophia that uses financial function to show the future value (FV) of their investment and a formula to determine the percentage of the college's tuition saved. Jacob and Sophia have supplied the following information:

Out of state Annual Tuition = $ 52,000; Rate (per month) = 5.25% / 12 ; Nper (number of monthly payment) = years* 12 ; Pmt ( monthly payment) = $ 425 ; and percentage of Tuition Saved = FV / Tuition for Four Years.

Jacob and Sophia are not sure how much they will be able to save each month. Use the concept and techniques presented in this chapter to create a data table that shows the future value and percenage of tuition saved for monthly payment from $ 175 to $ 775, in $ 50 increments. Unlock the rate, monthly payment, and years. Protect the workbook so that the user can select only unlocked cells. Submit the workbook as requested by your instructor.

Explanation / Answer

Out of state Annual Tuition = $ 52,000; Rate (per month) = 5.25% / 12 ; Nper (number of monthly payment) = years* 12 ; Pmt ( monthly payment) = $ 425 ; and percentage of Tuition Saved = FV / Tuition for Four Years.....

monthly payment from $ 175 to $ 775, in $ 50 increments.

5.25% annual interest, compounded monthly.

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