Planning For Tuition Expenses

1
Planning For Tuition Expenses

• Two parents want to provide for their daughters
  college expenses with some of the money they have
  recently inherited
• They hope to establish an account that would
  cover the needs of their daughters college
  education, which begins 4 years from now
• Their estimate is that first-year college
  expenses will come to 24,000 and will increase
  2,000 per year during each of the remaining 3
  years of college
• The following investment instruments are
  available
• What is the least expensive way to satisfy future
  tuition requirements?