Daughter's First Year in College

In this first case, several different options are presented for clients who need $35,000 in six years for their daughter's first year of college. Several different possibilities are given which include a lump sum investment, an ordinary annuity payment option with even and uneven cash flows, and the possibility of spending the money they have now on a home remodel, and then borrowing the money needed for their daughters college at a less expensive state university six years from now when she needs it. Additionally, the clients are only wanting to focus on fixed interest securities. By analyzing each scenario and then comparing them, the clients will be able to make an informed decision regarding their financial investment for the cost of their daughter's college tuition. In this first case, several different options are presented for clients who need $35,000 in six years for their daughter's first year of college. Several different possibilities are given which include a lump sum investment, an ordinary annuity payment option with even and uneven cash flows, and the possibility of spending the money they have now on a home remodel, and then borrowing the money needed for their daughters college at a less expensive state university six years from now when she needs it. Additionally, the clients are only wanting to focus on fixed interest securities. By analyzing each scenario and then comparing them, the clients will be able to make an informed decision regarding their financial investment for the cost of their daughter's college tuition.