Lucy and Fred Want to Begin Saving for Their Baby's

question 105

Multiple Choice

Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $150,000 in eighteen years. If they are able to earn 6% per annum, how much must be deposited at the beginning of each of the next eighteen years to fund the education?

• A) $4,853.
• B) $4,579.
• C) $8,333.
• D) $4,443.

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