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 can earn only 8% on your savings rather than the 11% you hope to earn?
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 to Cost