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

---

Definitions:

Stationary Location

A fixed position or site not subject to change or movement, often referenced in logistics, real estate, or geographic discussions.

Access Information

The process of retrieving or obtaining data or details from a system, database, or another source.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives.

Lightweight Mobile

Refers to mobile devices or applications optimized for low resource consumption, enabling faster performance and less battery use on less powerful devices.