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
Question 2
Which of the following would NOT normally be considered a flotation cost?
A) printing and engraving expenses B) dividends
C) legal fees D) underwriter's spread
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Transmission of recessive disorders (25% chance for an affected child).
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