Multiple Choice
Cary's wonderful parents established a college savings plan for him when he was born.They deposited $50 into the account on the last day of each month.The account has earned 10% compounded monthly,tax-free.Now he's off to State U.What equal amount can they withdraw beginning today (his 18th birthday) and each year for three additional years to spend on his education,assuming that the account now earns 7% annually.
A) $8,285
B) $8,865
C) $9,486
D) $30,028
Correct Answer:
Verified
Correct Answer:
Verified
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