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Future Value of Educational IRA for Child

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. $54,719
c. $33,548
d. $85,920
e. $60,056

Solution Summary

The solution explains how to determine the accumulated value of the savings

$2.19