You Would Like to Give Your Daughter $50,000 Towards Her

question 268

Multiple Choice

You would like to give your daughter $50,000 towards her college education sixteen years from now. How much money must you set aside today for this purpose if you can earn 7.8% on your funds?

• A) $14,775.50
• B) $15,033.84
• C) $15,250.00
• D) $16,245.33
• E) $16,909.13

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Definitions:

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.

Tax Payments

The compulsory contributions to state revenue levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

International Trade

The exchange of goods and services across international borders or territories, involving imports and exports.

U.S. GDP

The total market value of all goods and services produced within the United States over a specific time period.