Suppose That a Young Couple Has Just Had Their First

question 49

Multiple Choice

Suppose that a young couple has just had their first baby and they wish to insure 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 9%. The parents deposit $2400 on their daughter's first birthday and plan to increase the size of their deposits by 7% 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) $80,232
• B) $160,463
• C) $112,324
• D) $176,509

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Definitions:

Grasp Rattle

describes an early developmental milestone where a baby learns to hold and shake a toy that makes noise.

Neonatal Period

The initial four weeks of a newborn's life, a critical period for adaptation outside the mother's womb.

Independent Existence

A state or condition in which an individual lives or operates without reliance on others for daily needs or decisions.

Fetus

A developing mammal or human from the end of the embryonic stage to birth, characterized by rapid growth and the maturation of organs and systems.