06/17/2016

321490127.xlsx Page 1 Documentation

College Savers

 Author Eric Evans

Date 6/15/2016

Purpose To design a college savings plan that projects

the future cost of college and analyze whether

enough savings can be generated to cover

those costs

 

06/17/2016

321490127.xlsx Page 2 Savings Plan

College Savers

Client Information   Savings Schedule

Student Adelita Juarez Year Age Date(s) Deposit(s) Net Cash Flow

 Age 9

 S a v i n g s Y e a r s

0 9 3/1/2016 $ 18,000 $ 18,000

 Years until College 10 1 10 7/17/2016 150 18,150

Parent(s) Jaime and Lucia Juarez 12/1/2016 8,853 27,003

12/25/2016 150 27,153

College Costs 2 11 7/17/2017 150 27,303

Current 1-Year Cost $21,000 12/1/2017 8,853 36,156

 Annual Inflation Rate 6.25% 12/25/2017 150 36,306

Projected 4-Year Cost ($169,067) 3 12 7/17/2018 150 36,456

12/1/2018 8,853 45,309

College Portfolio 12/25/2018 150 45,459

Portfolio Rate of Return 4.70% 4 13 7/17/2019 150 45,609

Initial Investment $18,000 12/1/2019 8,853 54,463

 Annual Deposit $8,853 12/25/2019 150 54,613

 Annual Gifts $150 5 14 7/17/2020 150 54,763

Total Deposits $128,588 12/1/2020 8,853 63,616

12/25/2020 150 63,766

Conclusions 6 15 7/17/2021 150 63,916

Net Present Value $0 12/1/2021 8,853 72,769

Plan Will Cover Expenses   Yes 12/25/2021 150 72,919

7 16 7/17/2022 150 73,069

12/1/2022 8,853 81,922

12/25/2022 150 82,072

8 17 7/17/2023 150 82,222

12/1/2023 8,853 91,075

12/25/2023 150 91,225

9 18 7/17/2024 750 91,975

12/1/2024 8,853 100,828

12/25/2024 150 100,978

 F r e s h m a n 10 19 7/17/2025 150 101,128

8/15/2025  (38,504)  62,624

12/1/2025 8,853 71,477

12/25/2025 150 71,627

 S o p h o m o r e

11 20 7/17/2026 150 71,777

8/15/2026  (40,911)  30,866

12/1/2026 8,853 39,720

12/25/2026 150 39,870

 J u n i o r 12 21 7/17/2027 150 40,020

8/15/2027  (43,468) (3,448)

12/1/2027 8,853 5,405

12/25/2027 150 5,555

Senior13 22 7/17/2028 150 5,705

8/15/2028  (46,184) (40,479)