And Daphne Are Saving for Their Daughter Ellen's College Education

question 20

Multiple Choice

and Daphne are saving for their daughter Ellen's college education.Ellen just turned 10 at Their long-run financial plan is to add an additional $5,000 in each of the next 4 years Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7.They expect their investment account to earn 9%.How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?

• A)$1,965.21
• B)$2,068.64
• C)$2,177.51
• D)$2,292.12
• E)$2,412.76

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Definitions:

Uplifted

The process of raising a part of the earth’s crust by tectonic forces, leading to the formation of mountains and plateaus.

Solidifies

The process of becoming firm or hard, or changing from a liquid or gas to a solid state.

Path

The direction or route taken or to be taken by a moving geological process, element, or feature, such as a river or a fault line.

Volcanic Glass

A type of rock formed from the rapid cooling of lava without crystallization, producing a natural glass.