Friday 8 June 2012

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


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

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