Suppose that a family wants to start a college fund for their child. if you invest in an account that pays 5.5% and want the fund to have a value of $53,000 after 18 years, how much should you deposit monthly? assume an annuity due.

a.
$142.98
c.
$143.49
b.
$143.30
d.
$145.52

Option c - $143.49          

Step-by-step explanation:

Given : Suppose that a family wants to start a college fund for their child. If you invest in an account that pays 5.5% and want the fund to have a value of $53,000 after 18 years

To find : How much should you deposit monthly?

Solution :  

Formula of future value of annuity

Where, Future value FV = $53,000

Rate 5.5%=0.055        

Time = 18 years        

Now, put all the values we get,    

The nearest value from the options is $143.49.

So, The monthly deposit is $143.49

Therefore, Option c is correct.

each side has a different length.  

step-by-step explanation: