Suppose a Young Couple Deposits $1,100 at the End of Each

question 131

Multiple Choice

Suppose a young couple deposits $1,100 at the end of each quarter in an account that earns an annual rate of 8.8%, compounded quarterly, for a period of 6 years. After the 6 years, they start a family and find they can contribute only $300 per quarter. If they leave the money from the first 6 years in the account and continue to contribute $300 at the end of each quarter for the next years, how much will they have in the account (to help with their child's college expenses) ? Round your answer to the nearest cent. ​

• A)$171,621.52
• B)$226,229.22
• C)$54,607.70
• D)$280,836.92
• E)$397,850.74

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Definitions:

KB

Stands for Kilobyte, a unit of digital information storage equal to 1,024 bytes.

Binary Digits

The smallest unit of data in computing, represented as either 0 or 1, used in the binary numbering system.

Machine Cycles

The basic operations performed by a CPU, such as fetching, decoding, and executing instructions, typically within a few steps or stages.

Megabyte

A unit of digital information storage or transmission that is approximately one million bytes.