Suppose that you wish to save for your child's college education by opening up an educational IRA. - 3950

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Request Description

 Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per month into the IRA for the next 18 years. Assume that you will be able to earn 10%, compounded monthly, on your investment. How much will you have accumulated at the end of 18 years? 

A. $21,600 

B. $54,719 

C. $60,056 

D. $85,920 

E. $33,548

Solution Description

Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per