You Have Saved $120,000 for Your Child to Attend College

question 109

Multiple Choice

You have saved $120,000 for your child to attend college.If it is in an account earning an annual rate of 8%,how much can you take out in equal payments at the end of each of the next four years to pay for their education?

• A)$30,000.00
• B)$38,745.67
• C)$36,230.50
• D)$41,245.78

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Definitions:

Amplitude

A measurement of the magnitude of change in a fluctuating variable, often used in physics to describe the height of a wave from its midpoint.

Diminished

Reduced in size, importance, or intensity.

Adduction

Movement towards the midline of the body, as in bringing the fingers or toes together.

Abduction

The act of forcibly taking someone away against their will, often used in the contexts of kidnapping or moving a limb away from the body's central line.