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 $700 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?

A) $5,945,936.09
B) $6,079.76
C) $70,114.89
D) $607,975.89
E) $7,073.13