You are saving for your child's university education.It is her 1st birthday today.She will start university just after her 19th birthday.You are going to save $2,000 per year each year starting today and ending on her 18th birthday.If you expect to earn a rate of 5% in the savings account,then how much will you have saved by her 19^th birthday? A) $56,264.77 B) $59,078.01 C) $61,078.01 D) $64,131,91 E) $54,264.77

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc18_0853_a768_233d7c19840b_TB2902_11 × 11ea7fdb_fc18_0854_a768_0156a93628fe_TB2902_11 FV = 2,000 × 11ea7fdb_fc18_0855_a768_31ce335b6775_TB2902_11 × 11ea7fdb_fc18_0856_a768_2f1001c9cb7a_TB2902_11 = $59,078.01
Using a financial calculator:
N = 18, I/Y = 5, PV = 0, PMT = -2,000, cpt FV = 56,264.77
56,264.77 × 1.05 = $59,078.01

You Are Saving for Your Child's University Education