Providing for children's school fees

In 14 years time, when his son starts high school, Mr Roland guesses the fees will amount to 304 € per month, i.e. 3 648 € a year. To face this expense his son could withdraw cash from a bank account bearing say 6 %, the initial capital to allow this rate of withdrawal must be 13 047 €.

To obtain the same capital in 14 year's time, Mr Roland has to buy now 7 heads (growth option) using the same supposed figures as in the 3 examples here above (1 143 € and 4.20 % yield).

He would own 11.46 heads, i.e. 13 098 €.