A financial advisor tells you that you can make your child a millionai

A financial advisor tells you that you can make your child a millionaire if you just start saving
early.

You decide to put an equal amount each year into an investment account that earns 7.5%
interest per year, starting on the day your child is born. How much would you need to invest each
year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years
old? (Your last deposit will be made on his 34th birthday.)
A) $6,525 B) $20,347 C) $12,500 D) $7,910

ANSWER

A