Your Friend John Started College at the Age of 18

question 115

Multiple Choice

Your friend John started college at the age of 18 with $63,450 already saved,because 18 years ago when he was born his parents placed money into a special college savings account earning 7.25% per year.How much money did John's parents place into his college account?

• A)$18,000
• B)$3,525
• C)$17,262
• D)$5,824

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Definitions:

Unemployment Compensation

Unemployment compensation refers to the financial assistance provided by the government to unemployed workers who meet certain eligibility criteria, aiming to reduce the economic burden of unemployment.

Employers

Entities or individuals that hire and employ workers, providing compensation in exchange for the performance of job duties and contributing to the labor market dynamics.

Lorenz Curve

The Lorenz curve is a graphical representation of the distribution of income or wealth within a society, illustrating inequalities.

Income Inequality

The unequal distribution of an economy’s total income among households or families.