Opening up an educational ira


Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per month into the IRA for the next 18 years. Assume that you will be able to earn 10%, compounded monthly, on your investment. How much will you have accumulated at the end of 18 years?

A. $21,600

B. $33,548

C. $85,920

D. $60,056

E. $54,719

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Business Management: Opening up an educational ira
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