When Your First Child Is Born, You Begin to Save

Multiple Choice

When your first child is born, you begin to save for college by depositing $500 per month in an account paying 12% interest per year. You increase the amount you save by 2% per year. With continuous investment and compounding, how much will you have accumulated in the account by the time your child enters college 18 years later Round your answer to the nearest cent.

A) $434,268.49
B) $4,342.68
C) $4,247,097.21
D) $5,052.23
E) $50,082.07