On the day you were born, your parents opened a college savings account with an initial deposit of $2.200 On every one of your birthdays since, your parents have made an additional deposit that is 3% larger than amount deposited in the previous year The account eams interest annually Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following? OA $89.839 OB. $27,958 OC. $99,002 OD $30,000 OE $29,050 The deposit made on your 18th birthday will be the final depost made into the account. You plan on using the balance in the account to fund your college education You will be attending a 4-year institution and you will assume that tution costs will remain constant over the next four years If the first annual tution payment will be made on your 19th birthday, what is the maximum annual taboo expense that the balance in your account can suntain if you plan on attending college for four years? You may assume that the money will remain in the account until tis sed to make a tation payment The msnum annual tution expenses 5 (please round your answer to the nearest dollar)
On the day you were born, your parents opened a college savings account with an initial deposit of $2.200 On every one of your birthdays since, your parents have made an additional deposit that is 3% larger than amount deposited in the previous year The account eams interest annually Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following? OA $89.839 OB. $27,958 OC. $99,002 OD $30,000 OE $29,050 The deposit made on your 18th birthday will be the final depost made into the account. You plan on using the balance in the account to fund your college education You will be attending a 4-year institution and you will assume that tution costs will remain constant over the next four years If the first annual tution payment will be made on your 19th birthday, what is the maximum annual taboo expense that the balance in your account can suntain if you plan on attending college for four years? You may assume that the money will remain in the account until tis sed to make a tation payment The msnum annual tution expenses 5 (please round your answer to the nearest dollar)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:On the day you were born, your parents opened
than the amount deposited in the previous year
Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following?
OA $80,839
OB $27,958
OC. $99,002
a college savings account with an initial deposit of $2.200 On every one of your birthdays since, your parents have made an additional deposit that is 3% larger
The account eams 6.7% interest annually
OD $30,000
OE $29,050
The deposit made on your 18th birthday will be the final deposit made into the account You plan on using the balance in the account to fund your college education You will be attending a 4-year institution and
you will assume that tuition costs will remain constant over the next four years. If the first annual tution payment wit be made on your 19th birthday, what is the maximum annual tabon expense that the balance
in your account can sustain if you plan on attending college for four years? You may assume that the money will remain in the account until it is used to make a tution payment.
The maximum annual tution expense is S
(please round your answer to the nearest dollar) -
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