A Trust Fund for a Newborn Is Being Set Up

question 140

Short Answer

A trust fund for a newborn is being set up by a single payment so that at the end of 18 years there will be $34,000.If the fund earns interest at the rate of 6.25% compounded monthly,how much money should be paid into the fund initially?

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Definitions:

Color-blindness

An approach or ideology that disregards racial and ethnic differences, which can unintentionally perpetuate disparities.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Poverty

A socioeconomic condition characterized by a lack of financial resources or means necessary to meet basic needs such as food, shelter, and healthcare.

Afrocentricity

An approach that emphasizes the importance of African culture, values, and perspectives in the analysis of social and political phenomena.