Use the Information for the Question(s)below

question 59

Essay

Use the information for the question(s)below.
Suppose that a young couple has just had their first baby,a daughter,and they wish to ensure that enough money will be available to pay for her college education.Currently,college tuition,books,fees,and other costs,average $12,500 per year.On average,tuition and other costs have historically increased at a rate of 4% per year.
-Assuming that college costs continue to increase an average of 4% per year and that all her college savings are invested in an account paying 7% interest,then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to:

---

Definitions:

Free Riding

describes a scenario where individuals or entities take advantage of the benefits offered by a collective effort without contributing equitably to the effort.

Oral Communication

The process of expressing information or ideas through spoken words to one or more listeners.

Telephonic Conversation

A conversation held over the telephone, allowing people to communicate verbally even when physically distant.

Text Messaging

The act of composing and sending brief, electronic messages between two or more mobile devices or computers.