Which Best Defines a 529 Plan

question 48

Multiple Choice

Which best defines a 529 plan?

• A)An account that is designed to help finance future college expenses.
• B)A time deposit account where the depositor agrees on a time period and sum of money.
• C)An account that allows the holder to write checks against funds deposited in the account.
• D)Funds set aside to be withdrawn after the age of 59.5 without penalty.

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Definitions:

Discrete Quantitative Variable

A variable that represents countable quantities.

Interval of Values

A range of numerical or quantitative values within which a measurement or quantity is said to lie, often used in statistics to describe confidence intervals or ranges of uncertainty.

Categorical Data Set

This type of data set involves values that are grouped into categories rather than being numerically valued.

Bar Chart

A graphical representation of data using bars of varying lengths to show the values of different categories or groups.