Question

You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $6,400 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest. Under these assumptions, how much will you have 4 years from today? $29,461.93 $22,980.31

Answer 1

The dollar amount at the end of 4 years will be ...

... (((6400×1.057 +6400)×1.057 +6400)×1.057 +6400)×1.057 = 29,461.93

4 years from today, you will have $29,461.93.