Cary’s wonderful parents established a college savings plan for him wh

Cary’s wonderful parents established a college savings plan for him when he was born. They
deposited $50 into the account on the last day of each month. The account has earned 10%
compounded monthly, tax-free. Now he’s off to State U.

What equal amount can they withdraw
beginning today (his 18th birthday) and each year for three additional years to spend on his
education, assuming that the account now earns 7% annually.
A) $30,028 B) $9,486 C) $8,285 D) $8,865

ANSWER

C