When Your First Child Is Born, You Begin to Save

question 49

Multiple Choice

When your first child is born, you begin to save for college by depositing $600 per month in an account paying 6% interest per year. With a continuous stream of investment and continuous compounding, how much will you have accumulated in the account by the time your child enters college 18 years later Round your answer to the nearest cent.

• A)$233,361.55
• B) $353,361.55
• C) $1,166.81
• D) $473,361.55
• E) $79,248.54

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Definitions:

Acceptance of Change

The willingness or ability of individuals or groups to adapt to or embrace alterations in their environment or circumstances.

Defence Mechanisms

Psychological attempts to reduce the anxiety associated with stress.

Unfreezing Stage

Unfreezing Stage is the initial phase in the change process where previous behaviors, attitudes, or norms are challenged to prepare for transition and acceptance of new ways.

Diagnosis Stage

A phase in problem-solving processes or medical contexts where an issue is identified and characterized to understand its nature before devising solutions.