Question

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? (Round the final answer to the nearest dollar.)

Answer 1

Answer:

how much will you have to start graduate school, six years from now?

Save 42.702,07

Explanation:

Annual % N Annual % VF

4000 1,14 3 4000 1,48 5.926,18

4000 1,14 2 4000 1,30 5.198,40

4000 1,14 1 4000 1,14 4.560,00

4000 1,14 0 4000 1,00 4.000,00

     

                        19.684,58

CF = CI(1+i)^n      

Aunt Save 19.684,58    

Interest                  14%    

Year                   2    

     

Two years 25582,07497    

     

Annual % N Annual % VF

8000 1,14 1 8000 1,14 9.120,00

8000 1,14 0 8000 1,00 8.000,00

     

                        17.120,00

     

Aunt Save 25582,07497    

Save          17.120,00    

     

Save 42.702,07