12
QuizMultiple Choice

Annuities

Question 12 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Suppose that a family wants to start a college fund for their child. If they can get a rate of 5.2%, compounded monthly, and want the fund to have a value of $55,500 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent.

Answer
A
$131.93
B
$2,662.49
C
$1,643.30
D
$3,446.64
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