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Posted: June 15th, 2022
You plan to save $8,000 each of the next 35 years, and invest that money
You plan to save $8,000 each of the next 35 years, and invest that money in an account that pays 9% annual interest. In addition, you plan to pay for your childâs college education beginning in 20 years. You expect that education to cost $30,000 per year for four years. To pay for the education, you will simply withdrawal money from your investment account. In addition, a long-lost relative recently died, leaving you $50,000. A timeline depicting this situation follows.Date01-1920-2323-35Deposits$50,000$8,000$8,000$8,000Withdrawals$30,000How much money will you have just after you make your last deposit 35 years from today?
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