When Your First Child Is Born, You Begin to Save

question 96

Multiple Choice

When your first child is born, you begin to save for college by depositing $500 per month in an account paying 6% interest per year. With a continuous stream of investment and continuous compounding, how much will you have accumulated in the account by the time your child enters college 18 years later?

• A)$972.34
• B)$294,467.96
• C)$394,467.96
• D)$66,040.45
• E)$194,467.96

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Definitions:

Breach

The violation of a law, duty, or other form of agreement.

Subjective Standard

A legal standard that is based on a person's individual perceptions, feelings, or opinions, rather than on external objectively measurable criteria.

Ambiguous Offer

A proposal to enter into an agreement that is unclear or uncertain in terms or intent, leading to potential misunderstandings or disputes.

Registered Letter Mail

A mail service that provides the sender with a mailing receipt, and the mail is held at the post office until the recipient signs for it, offering security for important documents.