Question

5 5 points Congratulations on the new arrivalill Your newborn will be going to college 18 short years from today, so you will need $1,000,000 at that time to fund the child's education. Each investment earns the same APR. Which of the following would result in your investing fewer total dollars to arrive at the same $1,000,000 in eighteen short years? Investing at the end of each year Investing at the beginning of each year Investing a single lump sum today Investing at the beginning of each month Moving to another question will save this response. Question 40/60 1 30 4 eSC FF F2 % 5 $ 4 # 3 & 7 0 9 6 8 2 Р O Y T U 70 Q m W H G Jк חד D А S B N M ? V Х C N ge

Answer 1

Ans- Investing a Lump Sum today

As when you Invest a lumpsum amount initially rather than Periodic Investment, It earns more Interest on the Initial Investment than Interest earned on Periodic investments. So, more interest will require fewer dollar to be Investment.