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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 2 years ago
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