Question

Raven’s parents wanted to help her with college expenses. When she was born they deposited $4,000 into an account that paid 4% compounded annually. They continued to make annual deposits into the account, decreasing the amount by $200 each subsequent year. They made the last deposit at the end of year 10. At the end of year 13, Raven’s parents deposited $3,000 into the account. After high school, Raven waited a bit before starting school. When she began college at the age of 22, how much did Raven have in the college fund? (Assume the amount was at the end of year 22.)

Answer 1

Pls see the table below for calculations. She had approx. $70,735 when she went to college in her college fund.

		Money deposited * (1.04 ^ (22 - Time))
Time	Money deposited	Value at Time = 22
0	4,000.00	9,479.68
1	3,800.00	8,659.32
2	3,600.00	7,888.04
3	3,400.00	7,163.29
4	3,200.00	6,482.61
5	3,000.00	5,843.70
6	2,800.00	5,244.35
7	2,600.00	4,682.45
8	2,400.00	4,156.02
9	2,200.00	3,663.16
10	2,000.00	3,202.06
11		-
12		-
13	3,000.00	4,269.94
14		-
15		-
16		-
17		-
18		-
19		-
20		-
21		-
22		-
Total	36,000.00	70,734.62