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Question - You are planning on having your first child next month and your parents have told you that they are going to open an account with $3,000 on the day your child is born. The money is to be used for college.
You plan to also put $1,500 of your own money into the same account on the day your child is born, and then another $1,500 into the account each year on your child's birthday, through his/her 18th birthday.
If the account averages an 8% annual return, what will the account balance be on your child's 18th birthday?
Financial Statement Analysis and Preparation
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