Question 1118400



you will make a total of 5 deposits of 193 at the end of each year starting at the end of year 4.


the savings account interest rate is 11% per year.


the present value of the money invested at the end of year 4 is equal to 193 / 1.11^4.


the present value of the money invested at the end of year 5 is equal to 193 / 1.11^5.


the present value of the money invested at the end of year 6 is equal to 193 / 1.11^6.


the present value of the money invested at the end of year 7 is equal to 193 / 1.11^7.


the present value of the money invested at the end of year 8 is equal to 193 / 1.11^8.


add them up and you get a present value of $521.56.


i did this in excel.


here's the results.


<img src = "http://theo.x10hosting.com/2018/061001.jpg" alt="$$$" >