Suppose That You Wish to Save for Your Child's College

question 91

Multiple Choice

Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per month into the IRA for the next 18 years. Assume that you will be able to earn 10%, compounded monthly, on your investment. How much will you have accumulated at the end of 18 years?

• A) $21,600
• B) $54,719
• C) $33,548
• D) $85,920
• E) $60,056

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Definitions:

Past Tradition

Practices, customs, or beliefs that have been handed down from previous generations.

Social Obligations

The responsibilities or duties that individuals are expected to fulfill in their social roles, including personal and professional relationships.

Discrimination

Unjust or prejudicial treatment of individuals, often based on race, age, sex, or other protected characteristics.

Overseas Assignment

A work assignment in which an employee is sent to work in a country other than their own for a temporary period.