Use the Information for the Question(s)below

question 25

Multiple Choice

Use the information for the question(s) below.
Suppose that a young couple has just had their first baby,a daughter,and they wish to ensure that enough money will be available to pay for her college education.Currently,college tuition,books,fees,and other costs,average $12,500 per year.On average,tuition and other costs have historically increased at a rate of 4% per year.
-Assuming that college costs continue to increase an average of 4% per year and that all her college savings are invested in an account paying 7% interest,then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to:

• A)$97,110.
• B)$107,532.
• C)$101,291.
• D)$50,000.

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Definitions:

Edward Bellamy

An American author and socialist, most famous for his utopian novel "Looking Backward," published in 1888, which imagined a future society based on cooperation and economic equality.

Looking Backward

"Looking Backward" is a utopian science fiction novel by Edward Bellamy, published in 1888, that imagines a future society based on equality, cooperation, and technological progress.

British

refers to anything related to the United Kingdom, including its people, culture, and history.