A Financial Advisor Tells You That You Can Make Your

question 49

Multiple Choice

A financial advisor tells you that you can make your child a millionaire if you just start saving early.You decide to put an equal amount each year into an investment account that earns 7.5% interest per year,starting on the day your child is born.How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years old? (Your last deposit will be made on his 34th birthday.)

• A) $6,525
• B) $7,910
• C) $12,500
• D) $20,347