Suppose That a Young Couple Has Just Had Their First

question 87

Multiple Choice

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education.They decide to make deposits into an educational savings account on each of their daughter's birthdays,starting with her first birthday.Assume that the educational savings account will return a constant 7%.The parents deposit $2000 on their daughter's first birthday and plan to increase the size of their deposits by 5% each year.Assuming that the parents have already made the deposit for their daughter's 18th birthday,then the amount available for the daughter's college expenses on her 18th birthday is closest to:

• A)$42,825.
• B)$97,331.
• C)$67,998.
• D)$103,063.

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Definitions:

Reversibility

The understanding that objects can change form and return to their original state, a concept significant in cognitive development.

Concrete Operational

A stage in Piaget’s theory of cognitive development, ranging from about 7 to 11 years of age, where children gain a better understanding of mental operations and can think logically about concrete events.

Sensorimotor

The sensorimotor stage is a phase of development in which infants learn about the world through their sensory experiences and motor activities.

Formal Operational

A stage in Jean Piaget's theory of cognitive development, typically starting around age 12, where individuals develop the ability to think abstractly and critically.