Shawn has set up an "automatic account builder" plan with an investment company. At the end of each month, the company automatically deducts $125 from his checking account and deposits it into an account he has set up to save for his kids' college costs. If this continues for 17 years, and the account earns 6.36%, how much will his account grow to?

Shawn has set up an "automatic account builder" plan with an investment company. At the end of each month, the company automatically deducts $125 from his checking account and deposits it into an account he has set up to save for his kids' college costs. If this continues for 17 years, and the account earns 6.36%, how much will his account grow to?

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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Question

Shawn has set up an "automatic account builder" plan with an investment
company. At the end of each month, the company automatically deducts $125
from his checking account and deposits it into an account he has set up to save
for his kids' college costs. If this continues for 17 years, and the account earns
6.36%, how much will his account grow to?
O $3,529.31
O $45,750.23
O $3,641.05
O $42,343.38

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