You plan to deposit $4,500 per month in your kid’s college fund for 12 consecutive years....

You plan to deposit $4,500 per month in your kid’s college fund for 12 consecutive years. Assuming an annual rate of 6% how much should you expect to have on the account at the end of year 12?

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Expert Solution

Particulars		Amount	Calculations
Deposit(PMT)	$ 4,500.00
Period = 12*12 =	144	=12*12
Annual Rate	6.00%
Monthly Rate	0.50%	=6%/12
Account Balance
After 12 Years(FV)	$945,675.73	=-FV(D6,D4,D3)
OR
Account Balance
After 12 Years(FV)	$ 945,675.73	*=4500((((1.005)^144)-1)/0.005)**

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jeff jeffy answered 1 year ago

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