You are starting college this month, and your favorite aunt has agreed to give you $4,000 at the end of each of your four years and you can save $8,000 at the end of each year for the first two years after you graduate. If all of these amounts are invested at 14%, how much will you have to start graduate school, six years from now?

Question

Mathematics

Fatima Berry

1 November, 21:43

You are starting college this month, and your favorite aunt has agreed to give you $4,000 at the end of each of your four years and you can save $8,000 at the end of each year for the first two years after you graduate. If all of these amounts are invested at 14%, how much will you have to start graduate school, six years from now?

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Answers (1)

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Carson · Answer 1

TOTAL = $42.702,08

Step-by-step explanation:

year 1 : $4.000 Cf = Ci x (1+i) ^n = 4.000 (1+0,14) ^5 = $7.701,66

year 2: $4.000 Cf = Ci x (1+i) ^n = 4.000 (1+0,14) ^4 = $6.755,84

year 3: $4.000 Cf = Ci x (1+i) ^n = 4.000 (1+0,14) ^3 = $5.926,18

Year 4: $4.000 Cf = Ci x (1+i) ^n = 4.000 (1+0,14) ^2 = $5.198,40

Year 5: $8.000 Cf = Ci x (1+i) ^n = 8.000 (1+0,14) ^1 = $9.120,00

Year 6:$8.000

TOTAL = $42.702,08