21
QuizMultiple Choice

Annuities

Question 21 • 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 5.5% , compounded monthly, and want the fund to have a value of $35,450 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent.

Answer
A
$81.38
B
$80.01
C
$11,829.97
D
$11,776.00
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