Bill and Ellen Sweatt Plan to Invest $2500 a Year

question 41

Short Answer

Bill and Ellen Sweatt plan to invest $2500 a year in an educational IRA for their granddaughter Sloane Martin. They will make these deposits on January 2^nd of each year. Bill and Ellen feel they can safely earn 8%. How much will be in this account on December 31 of the 18^th year?

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Definitions:

Atomic Monopoly

Refers to a period, particularly after World War II, when a single country (initially the United States) had exclusive knowledge, technology, and capability to produce nuclear weapons.

Fissionable Materials

Substances capable of undergoing fission reactions, used in nuclear reactors and weapons.

Free Trade

An economic policy that allows goods and services to be exchanged across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

World Economy

The global network of economic activities and interactions among countries, involving trade, investment, finance, and labor, which influence the economic policies and conditions worldwide.