Min-Jun and Min-Suh want to contribute $120,000 to a 529 plan for the benefit of

Question

Min-Jun and Min-Suh want to contribute $120,000 to a 529 plan for the benefit of their new grandchild. If done shortly after the birth of the child, with a 12.00 percent annual return and no other contributions, what will the account be worth when the child is 18 and ready to enter college?

Question - When the child is 18 and ready to enter college, the account will be worth $____________ (Round to the nearest cent.)

Compound Sum of $1

Compound Sum of $1 (FVIF)

Compound Sum of $1

Compound Sum of $1 (FVIF)

n = 18 3% 1.7024 4% 2.0258 5% 2.4066 6% 2.8543 7% 3.3799 8% 3.9960 9% 4.7171 10% 5.5599 11% 6.5436 12% 7.6900 13% 9.0243 14% 10.5752 15% 12.3755

Explanation / Answer

worth of the account after 18 years = 7.69*120,000

worth of the account after 18 years = 922,800

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