Today is your birthday and you decide to start saving for college. You will begi

Question

Today is your birthday and you decide to start saving for college. You will begin college on your 18th birthday and will need $4,000 per year at the end of each of the next 4 years (after that 18th birthday - isn't it nice the college lets you pay at the end of the year!) You will make an identical deposit each year up to and including the year you begin college. All your money will earn 12% interest including the time you are in college. If a deposit of $2,542.00 will allow you to reach your goal (gee, I love this question!) - are you ready for this?! How old are you now?

Explanation / Answer

Given required value that will be earned at the end of 4 years $4000

it is given that identical deposit each year up to and including the year begining college therefore

it includes the 18 th year so back 3year so present age is 15years

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