This is the last post in the College Funding Math series. Hopefully, by following the previous three posts, you have an idea of how to use math to figure out how to meet a goal. I also hope that you weren’t bored to death by reading these posts!
In Part III, we figured out that with a beginning balance of $3,000, Hector’s parents would need to save an additional $3,206 per year, invested to get 8% annual return, in order to meet his future college funding needs.
Now, with this post, I will show you an example of what all this looks like laid out in a spreadsheet. To conserve space, I had to abbreviate some of the titles for the columns. Here’s a listing of each title means:
Age = Beginning Age, for this example Hector is 5.
Beg. Amt. = The balance at the beginning of each year. Since we have $3,000 already saved up, that is the beginning amount for the first year. We are also assuming that the deposits are made at the beginning of the year.
Ann Dep = Annual Deposit, which is $3,206. Deposits are made at the beginning of each year.
Total = The total of the Beg. Amt and Ann Dep. columns.
Withdrawal = Amount withdrawn to pay for college.
Ending Balance = (Beg. Amt + Ann Dep – Withdrawal) x 1.08
Age 
Beginning 
Annual 
Total 
With 
Ending 
5 
$3,000 
$3,206 
$6,206 

$6,702 
6 
$6,702 
$3,206 
$9,908 

$10,700 
7 
$10,700 
$3,206 
$13,906 

$15,018 
8 
$15,018 
$3,206 
$18,224 

$19,682 
9 
$19,682 
$3,206 
$22,887 

$24,718 
10 
$24,718 
$3,206 
$27,924 

$30,158 
11 
$30,158 
$3,206 
$33,364 

$36,033 
12 
$36,033 
$3,206 
$39,238 

$42,377 
13 
$42,377 
$3,206 
$45,583 

$49,230 
14 
$49,230 
$3,206 
$52,435 

$56,630 
15 
$56,630 
$3,206 
$59,836 

$64,622 
16 
$64,622 
$3,206 
$67,828 

$73,254 
17 
$73,254 
$3,206 
$76,460 

$82,577 
18 
$82,577 
$3,206 
$85,782 
$24,513 
$66,170 
19 
$66,170 
$3,206 
$69,376 
$25,739 
$47,128 
20 
$47,128 
$3,206 
$52,333 
$27,026 
$25,172 
21 
$25,172 
$3,206 
$28,377 
$28,377 
$0 
There you have it. It is pretty selfexplanatory. However, if you have questions or comments about this series, please let me know and I’ll be happy to answer them.
Once again, I would like to thank the UnknownProfessor at the FinancialRounds blog for his help with the formula. It is always nice to count a professor among your friends.
Tags: Saving for College, College Funding, Time Value of Money, Annuity Due Formula, College Funding Math, Planning for College
Why is there a difference in the Total and Ending Balance in the first few cases ?