document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1118399>Question 1118399</A>: <I><SPAN STYLE=\"word-break: break-all;\"> It is now the beginning of the year. Assume that, starting at the end of the year, you will make deposits of $215 each year into a savings account. You will make a total of 11 yearly deposits. Additionally, in 2 years your parents will give you a one-time gift worth $1522 which you will immediately deposit into your account.<BR>\n" );
document.write( "If the savings account interest rate is 14%, what is the present value of this savings plan? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #733723 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=733723\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the present value of annual deposits of 215 made at the end of each year for 11 years at 14% per year is equal to 1,172.3376.\r<BR>\n" );
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document.write( "in 2 years, your parents will give you a one time gift worth 1522.00 which you will immediately deposit into your account.\r<BR>\n" );
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document.write( "that would be at the end of year 2.\r<BR>\n" );
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document.write( "present value of that at 14% per year would be 1,171.129578.\r<BR>\n" );
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document.write( "add up 1,172.3376 and 1,171.129578 and you get a total present value of 2,343.467178 which can be rounded to 2,343.47.\r<BR>\n" );
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document.write( "the investment of 215 in year 1 is divided by 1.14^1.<BR>\n" );
document.write( "the investment of 215 in year 2 is divided by 1.14^2.<BR>\n" );
document.write( "etc..., until<BR>\n" );
document.write( "the investment of 215 in year 12 is divided by 1.14^12.\r<BR>\n" );
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document.write( "the additional investment of 1522 in year 2 is divided by 1.14^2.\r<BR>\n" );
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document.write( "the sum of all these investments is the present value of the total.\r<BR>\n" );
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document.write( "this can be seen in the following excel printout.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/061002.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( " </SPAN>\n" );
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