The Armstrongs Wish to Establish a Custodial Account to Finance

question 189

Multiple Choice

The Armstrongs wish to establish a custodial account to finance their children's education. If they deposit $600 monthly for 10 years in a savings account paying 6% / year compounded continuously, how much will their savings account be worth at the end of this period? Round your answer to the nearest dollar.

• A) $99,877
• B) $98,654
• C) $100,786
• D) $94,327

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Definitions:

Inflation

The speed at which overall price levels for goods and services increase, leading to a decline in buying power.

Rock 'n' Roll Music

a genre of popular music that originated in the United States in the late 1940s and early 1950s, characterized by a simple, energetic style and influenced by blues, country music, and rhythm and blues.

African-American Rhythm-and-Blues

A genre of popular music originating in the African American communities in the 1940s, characterized by a strong rhythm, blues influence, and incorporating jazz, gospel, and rock and roll elements.

Early Jazz

A style of music characterized by distinctive rhythms and improvisation, emerging in the early 20th century, particularly in New Orleans.