Mary Kay has a child who will start college in 10 years. She plans to set aside $2,400 per year for her child's education during this period and estimates she will earn an annual rate of 8%

How much will Mary Kay have available for her child's education in 10 years?
A) $24,000
B) $27,446
C) $34,769
D) $29,971


Answer: C
Explanation: C) FVIFA, 8%, 10 years: 14.487 × $2,400 = $34,769

Business

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