Multiple Choice
Otto is planning for his son's college education to begin ten years from today. He estimates the yearly tuition, books, and living expenses to be $10,000 per year for a four-year degree. How much must Otto deposit today, at an interest rate of 12 percent, for his son to be able to withdraw $10,000 per year for four years of college?
A) $12,880
B) $ 9,780
C) $40,000
D) $18,950
Correct Answer:
Verified
Correct Answer:
Verified
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