Suppose That You Want to Create a "College Fund" for Your

question 134

Multiple Choice

Suppose that you want to create a "college fund" for your newborn child and place $300 in a bank account at the end of each of the next 20 years.If that account earns an annual rate of return of 7%,how much will be in that account at the end of the twentieth year?

• A)$13,420.00
• B)$12,977.53
• C)$13,178.20
• D)$11,828.32
• E)$12,298.65

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