Question

Score: 0 of 1 pt < 2 of 6 (5 complete) HW Score: 53.89%, 3.23 of 6 pts X S12A-15 (similar to) Question Help Liam is entering high school and is determined to save money for college. Liam feels he can save $1,000 each year for the next four years from his part-time job. If Liam is able to invest at 4%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.). (Click the icon to view Future Value of Ordinary Annuity of $1 table.) (Round your answer to the nearest dollar.) Liam will have $ [ when he starts college.

Answer 1

1st year end = $1,000 + 4% = $1,040

2nd year end = ($1,040 + $1,000) + 4% = $2,122

3rd year end = ($2,122 + $1,000) + 4% = $3,247

4th year end = ($3,247 + $1,000) + 4% = $4,416

Liam will have $4,416 when he starts college.