Question
Grandpa places money in an account on your first birthday and will place that same amount in the account every year, ending with your 18th birthday.
So there is a total of 18 deposits starting on first birthday.
He expects to earn 8% interest per year.
How much does he have to put in the account every year to have $160,000?
Thank you.
So there is a total of 18 deposits starting on first birthday.
He expects to earn 8% interest per year.
How much does he have to put in the account every year to have $160,000?
Thank you.
Answers
Reiny
Pay( 1.08^18 -1)/.08 = 160000
pay = $ 4272.34
pay = $ 4272.34