You plan to start saving for your son’s college education. He will begin college

Question

You plan to start saving for your son’s college education. He will begin college when
he turns 18 years old and will need $4,000 at that time and in each of the following
three years. You will make a deposit at the end of this year in an account that pays 6% compounded annually as well as an identical deposit at the end of each year,
with the last deposit occurring when he turns 18. If an annual deposit of $1,484 will
allow you to reach your goal, how old is your son now?

Plz show how to use the calculator, and let me know the answer!

Thank you very much

Explanation / Answer

Amount needed at the time of joining the college =$4000.

Interst rate on the account is 6%.

Annual deposit =$1,484.

Deposit was started when the kid turned 11 years old. As the deposit is made at the end of the year, it did not earn any interest in the year of initial deposit.

Particulars Opening balance(A) Recurring deposit (B) Interest (C ) Principal + interest D=A+B+C Withdrawal ( E) After withdrawal F=D-E Interest calculation C=D/106*6 Turned 21 3773.58 0.00 226.42 4000.00 4000.00 0.00 226.42 Turned 20 7333.57 0.00 440.01 7773.58 4000.00 3773.58 440.01 Turned 19 10692.05 0.00 641.52 11333.57 4000.00 7333.57 641.52 Particulars Opening balance(A) Recurring deposit (B) Interest (C ) Principal + interest D=A+B+C Withdrawal ( E) After withdrawal F=D-E Interest calculation C=[(F+E-B)/106]*6 Turned 18 12460.42 1484.00 747.63 13208.05 4000.00 10692.05 13208.05 Turned 17 10355.12 1484.00 621.31 12460.42 0.00 12460.42 10976.42 Turned 16 8368.98 1484.00 502.14 10355.12 0.00 10355.12 8871.12 Turned 15 6495.26 1484.00 389.72 8368.98 0.00 8368.98 6884.98 Turned 14 4727.60 1484.00 283.66 6495.26 0.00 6495.26 5011.26 Turned 13 3060.00 1484.00 183.60 4727.60 0.00 4727.60 3243.60 Turned 12 1486.80 1484.00 89.21 3060.00 0.00 3060.00 1576.00 Turned 11 0.00 1484.00 0.00 1484.00 0.00 1484.00 0.00

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