You Would Like to Give Your Daughter $40,000 Towards Her

question 31

Multiple Choice

You would like to give your daughter $40,000 towards her college education thirteen years from now. How much money must you set aside today for this purpose if you can earn 6.3% on your funds?

• A) $17,750.00
• B) $17,989.28
• C) $18,077.05
• D) $18,213.69
• E) $18,395.00

---

Definitions:

Sound Reason

A basis for argument or decision that is valid and grounded in logic or fact.

Creative Spirit

The innate or developed ability to create, innovate, or conceive artistic or novel ideas, projects, or solutions.

Willingness to Take Risks

The propensity of an individual to engage in behaviors or actions that have the potential for negative outcomes in pursuit of a desired result.

Defer to Others

The act of yielding or submitting to the judgment, opinion, or decision of another person.