Posted by **sue** on Tuesday, March 1, 2011 at 5:52pm.

Anne is planning to attend college when she graduates from high school in 7 years from now. She anticipates that she will need $10,000 at the beginning of each college year to pay for tuition and fees, and have some spending money.

Anne has made an arrangement with her father to do chores if her dad deposits $3,500 at the end of each year for the next 7 years in a bank account paying 8% interest. Will there be enough money in the account for Anne to pay for her college expenses? Assume the rate of interest stays at 8 percent during the college year.

- finance -
**Anna**, Monday, March 7, 2011 at 8:53pm
She needs $10,000 in 7 years, making $3,500 each year, with 08% interest.

Starting: $0.00

After the first year: $3,500

After the second year: ($3,500 (.08)) + $3,500 + $3,500 = 7,280

After the third year (7,280 (.08)) + $3,500 + $7,280 = 11,082.40

She has enough for a year. Basically, find the interest on the last year and then add the newest amount of money to the last year's return.

- finance -
**mar**, Saturday, May 7, 2011 at 1:37am
What major benefits do corporations and investors enjoy because of the existence of organized

security exchanges?

## Answer this Question

## Related Questions

- Finance - shley is planning to attend college when she graduates from high ...
- college math - ok this is the last question i need help on. Abigail just ...
- Finance - 5. John and Daphne are saving for their daughter Ellen's college ...
- math - Suppose that the average earnings for high school graduates is $25,000, ...
- Economics - Suppose that the average earnings for high school graduates is $25,...
- math - 2. In a certain state, it has been shown that only 56% of the high school...
- math - In a certain state, it has been shown that only 56% of the high school ...
- statistics - An SRS of 40 San Diego County Schools graduates showed that 26 of ...
- math - 2. In a certain state, it has been shown that only 56% of the high school...
- Finance - Professor Anderson has a daughter who is 3 years old. In 15 years she ...

More Related Questions