Having Received a Large Inheritance, a Child's Parents Wish to Establish

question 71

Multiple Choice

Having received a large inheritance, a child's parents wish to establish a trust for the child's college education. If 5 year(s) from now they need an estimated $60,000, how much should they set aside in trust now, if they invest the money at the given rate of interest. 17.5% compounded quarterly _________
17) 5% compounded continuously _________

• A) $25,481.29, $25,170.27
• B) $25,170.27, $25,933.35
• C) $25,481.29, $25,011.72
• D) $25,011.72, $25,170.27

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