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    SaraMays's Avatar
    SaraMays Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Oct 18, 2009, 04:57 PM
    Finance
    If you wish to accumulate $100,000 in the child's college fund after 18 years, and you can invest at a 6% annual rate, how much must you invest at the end of each year if the first deposit is made at the end of the first year?
    justcurious55's Avatar
    justcurious55 Posts: 4,360, Reputation: 790
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    #2

    Oct 18, 2009, 05:21 PM

    Well, what was the initial deposit made at the end of the first year?

    And is this a homework question or are you really looking to start saving for your child's education?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #3

    Oct 18, 2009, 05:32 PM

    You need $3,713.65 every year.
    See Calculations for 18 years.

    1 3,713.65
    2 3,713.65 3,936.47
    3 3,936.47 4,172.65
    4 4,172.65 4,423.01
    5 4,423.01 4,688.40
    6 4,688.40 4,969.70
    7 4,969.70 5,267.88
    8 5,267.88 5,583.95
    9 5,583.95 5,918.99
    10 5,918.99 6,274.13
    11 6,274.13 6,650.58
    12 6,650.58 7,049.61
    13 7,049.61 7,472.59
    14 7,472.59 7,920.94
    15 7,920.94 8,396.20
    16 8,396.20 8,899.97
    17 8,899.97 9,433.97
    18 9,433.97 10,000.01
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Oct 20, 2009, 09:15 PM

    It's homework, most definitely.

    Sara, have you made an attempt to solve this?
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