Multiple Choice
Your parents start saving for your sister's college education.She will begin college when she turns age 18 and will need $4,000 at that time and at the end of each of the following 3 years.They will make a deposit at the end of this year in an account which pays 6 percent compounded annually,and an identical deposit at the end of each year with the last deposit occurring when she turns age 18.If an annual deposit of $1,484 will allow them to reach their goal,how old is your sister now?
A) 13
B) 8
C) 14
D) 12
E) 10
Correct Answer:
Verified
Correct Answer:
Verified
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