Suppose that you wish to save for your child's college education by opening up an educational IRA. - 3996

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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. 

$54,719

B. 

$33,548

C. 

$85,920

D. 

$21,600

E. 

$60,056

Solution Description

14) 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?