A 20-year-old student decided to set aside $100 on
his 21st birthday for investment. Each subsequent
year through his 55th birthday, he plans to increase
the investment on a $100 arithmeticgradient. Hewill
not set aside additional money after his 55th birth-
day. If the student can achieve a 12% rate of return,
what is the future worth of the investments on his
65th birthday?
1 answer