Question 43 (8 points)

You have an absolutely brilliant child who is six years old and will be attending a private college in twelve years. You know that in twelve years a four-year college will cost at least $70,000 per year (total $280,000), including tuition, books, and room and board. You determine that you can earn 12 percent on a mutual fund investment during the next twelve years, and invest at the beginning of each year. How much will your total investment be for the twelve-year period?

Question 43 options:

$53,811

$60,269

$124,310

$139,227

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