In six years, your daughter will be going to college. You wish to have a fund that will provide her with $10,000 at the end of each of her four years in college. How much must you deposit today if the money will earn 10 percent in each of the 10 years?

A) $29,744.65
B) $29,783.76
C) $17,878.80
D) $21,651.10

College Fund

is a savings plan intended to support future college expenses, often established by parents or guardians for their children.

Deposit Today

The act of placing money into a financial account or investment vehicle with the expectation of future returns.

Earn

To earn is to receive money or its equivalent in return for labor, services, or investments made.