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

Question 22
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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Q 23
Your great-uncle placed $500 a year in a bank account for your "college fund" for each of the last 18 years.How much is now in your college account (at the end of the eighteenth year)if your account earned an annual rate of return of 6%? A) $15,452.83 B) $15,175.17 C) $16,427.17 D) $15,413.80 E) $15,546.18
Q 24
Which financial planning concepts should be helpful to a couple planning for how much money to start saving for their retirement? A) Reinvesting B) Compound interest C) Future values D) Present values E) All of the above
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