Question 1118399
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.


in 2 years, your parents will give you a one time gift worth 1522.00 which you will immediately deposit into your account.


that would be at the end of year 2.


present value of that at 14% per year would be 1,171.129578.


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.


the investment of 215 in year 1 is divided by 1.14^1.
the investment of 215 in year 2 is divided by 1.14^2.
etc..., until
the investment of 215 in year 12 is divided by 1.14^12.


the additional investment of 1522 in year 2 is divided by 1.14^2.


the sum of all these investments is the present value of the total.


this can be seen in the following excel printout.


<img src = "http://theo.x10hosting.com/2018/061002.jpg" alt="$$$" >