Question

You start savings a $250 a month for the next 22 years to give us a gift to your daughter when she graduates college if you put the money into a long-term savings account that receives 3.5 interest how much money will you be able to give your daughter

Answer 1

$376,475.71

Explanation:

FVA Due = P * [(1 + r)n – 1] * (1 + r) / r

FVA Due = 250 * [(1.2916)264 – 1] * (1.2916) / .2916