Use the Information for the Question(s) Below

question 75

Essay

Use the information for the question(s) below.
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently college tuition, books, fees, and other costs average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year.
-Assume that college costs continue to increase an average of 4% per year and that all her college savings are invested in an account paying 7% interest.Draw a timeline that details the amount of money she will need to have in the future four each of her four years of her undergraduate education (assuming that she begins college at age 18).

---

Definitions:

Joint Tenancy

An estate held by two or more jointly, with an equal right in all to share in the enjoyments of the land during their lives. An incident of joint tenancy is the right of survivorship.

Co-owners

Co-owners share joint ownership or possession of property or assets, each holding a portion of the rights, responsibilities, and benefits associated with the ownership.

Easement

The right to make certain uses of another person’s property or to prevent another person from making certain uses of his own property.

Ownership Transfer

The process by which the legal rights of owning an asset or property are transferred from one person or entity to another.