Question: Please help me with this question! After the first child is born, a couple decides to open an educational account to save for college funding.

Please help me with this question!

After the first child is born, a couple decides to open an educational account to save for college funding. On the market it is said some mutual funds can achieve 10% APR long-term performance. Thus the couple starts saving $5,000 each year (EOY, end-of-year, deposit) and places in the selected portfolios (earning 10% interest). Finally the couple gives the child the savings passport on the 18th birthday after the 18th $5,000 deposit. How much will be there in the account? Please show steps, thank you!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!