Eighteen years from now, 4 years of college are expected to cost $150,000. How much more must be deposited into an account today to fund this expense if you could only earn 8% rather than the 11% you had hoped to earn on your savings?
A) $12,211.18
B) $13,609.21
C) $14,006.41
D)$14,614.03

Question

Quizplus · Accepted Answer

Additional deposit = $150,000/1.08¹⁸ - $150,000/1.11¹⁸Additional deposit = $14,614.03

Eighteen Years from Now, 4 Years of College Are Expected