you are saving for your child's college.. there are 15 years before they will be in college. you have saved 0 so far. Your goal is $98,000. assume annual in rate is 8%. how much must you save at the end of each year in equal amounts to reach your goal? I know that with the hp10bII calc I am using, I would use 15N, 8 I/Yr, $98,000FV. I am just not sure if I am coming up with the correct payment though.

asked by allison

13 years ago

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1 answer

i = .08
n = 15

paym( 1.08^15 - 1)/.08 = 98000
paym = 98000/27.15211393 = $3609.30

answered by Reiny

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Question

you are saving for your child's college.. there are 15 years before they will be in college. you have saved 0 so far. Your goal is $98,000. assume annual in rate is 8%. how much must you save at the end of each year in equal amounts to reach your goal? I know that with the hp10bII calc I am using, I would use 15N, 8 I/Yr, $98,000FV. I am just not sure if I am coming up with the correct payment though.

1 answer

i = .08
n = 15

paym( 1.08^15 - 1)/.08 = 98000
paym = 98000/27.15211393 = $3609.30

Ask a New Question or answer this question.

Reiny · Answer

i = .08 n = 15 paym( 1.08^15 - 1)/.08 = 98000 paym = 98000/27.15211393 = $3609.30