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.

Question

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.

Answer 1

Pay( 1.08^18 -1)/.08 = 160000
pay = $ 4272.34