Case Study

Suppose you have a 10-year-old child and you plan to send him to university in the United States when he reaches 18. The course will last for 4 years. The annual tuition fee will be approximately US$10,000 and the living expenses will be approximately US$11,500. Assuming that the inflation rate and savings interest rate are 2% and 1% respectively, then the total expenses will be US$99,276 at his age of 18. In order to get the money ready, you need to save US$11,863 per year or US$992 per month starting from today.
What is expected tuition fee per annum? $
What is the expected living expense? $
What is the age of you/your child?
When will you/your child enter university?
How long will the course take?
What is the expected inflation rate? %
What is the expected annual savings interest rate? %

Estimated total expenses US$
Estimated annual savings amount US$
Estimated monthly savings amount US$

 
Remarks:
1. The savings interest rate is compounded annually.
2. The above example is for reference only.
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