Solve the Problem. -The Average Cost of a 4-Year College Education Is Projected

question 198

Multiple Choice

Solve the problem.
-The average cost of a 4-year college education is projected to be $100,000 in 15 years. How much Money should be invested now at 3.5%, compounded quarterly, to provide $100,000 in 15 years?

• A) $59,290.78
• B) $35,153.96
• C) $100,000.00
• D) $87,749.93

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Definitions:

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of an account holder, and commonly used to guarantee payment.

Certified Check

A check verified by a bank, guaranteeing that the writer of the check has enough funds available for the transaction.

Drawee

The party in a financial transaction who is directed to pay a certain amount of money as outlined in a draft or check.

Draft

A preliminary version of a document or plan that is subject to revision.