Assume the Total Cost of a College Education Will Be

question 37

Multiple Choice

Assume the total cost of a college education will be $325,000 when your child enters college in 16 years.You presently have $40,000 to invest and do not plan to invest anything further.What annual rate of interest must you earn on your investment to cover the entire cost of your child's college education?

• A)12.65 percent
• B)10.40 percent
• C)13.99 percent
• D)14.62 percent
• E)11.08 percent

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Definitions:

Demographics

Pertains to statistical data relating to the population and particular groups within it, including factors like age, gender, income, and education.

Matching Hypothesis

The proposition that people tend to pair up with others who are equally attractive.

Attractiveness

The quality of being appealing or pleasing in appearance, which can evoke interest, desire, or preference in others.

Physical Attractiveness

The perception of an individual's physical features as aesthetically pleasing or beautiful by societal or personal standards.