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Assume the Total Expense for Your Current Year in College

Question 1

Multiple Choice

Assume the total expense for your current year in college equals $20,000.Approximately how much would your parents have needed to invest 21 years ago in an account paying 8 percent compounded annually to cover this amount?


A) $952
B) $1,600
C) $1,728
D) $3,973 $20,000 = x(1.08) 21
$20,000 = 5.0338x

Correct Answer:

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