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There are 3 major types of saving vehicles for college. What are they? Which typ

ID: 2644909 • Letter: T

Question

There are 3 major types of saving vehicles for college. What are they? Which type do you think is best and why? Today, you have $10,000 and you want to invest it in the stock market. You know the market has averaged 10% per year for the last 90 years and you believe that you can earn 10% per year for 15 years. How much will you have at the end of 15 years? There are 3 major types of saving vehicles for college. What are they? Which type do you think is best and why? Today, you have $10,000 and you want to invest it in the stock market. You know the market has averaged 10% per year for the last 90 years and you believe that you can earn 10% per year for 15 years. How much will you have at the end of 15 years?

Explanation / Answer

Amount will  you have at the end of 15 years = Invested Amount*(1+Expected Rate of Return)^nper

Amount will  you have at the end of 15 years = 10000*(1+10%)^15

Amount will  you have at the end of 15 years = $ 41,772.48