Solve the Problem. Round to the Nearest Cent

question 2

Multiple Choice

Solve the problem. Round to the nearest cent.
-You intend to create a college fund for your baby. If you can get an interest rate of 5.5% Compounded monthly and want the fund to have a value of $177,122 after 18 years, how much Should you deposit each month?

• A) $9462.31
• B) $529.91
• C) $409.48
• D) $481.74

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Definitions:

Capital Goods

Long-lasting goods acquired or manufactured by a business that are used to produce other goods or services.

Interest Rates

The percentage charged on borrowed funds or paid on deposits over time, reflecting the cost of borrowing or the reward for saving.

Loanable Funds

The money available for borrowing and lending in the financial markets, determined by savings and investments.

Interest Rate

The percentage of a borrowed sum that the lender charges as interest to the borrower, usually specified as an annual percentage of the total loan amount.