After graduation, you plan to work for Dynamo Corp. for 12 years and then start your own

Question:

After graduation, you plan to work for Dynamo Corp. for 12 years and then start your own business. You expect to save and deposit $7,500 a year for the first 6 years (t=1 through t=6), and $15,000 annually for the following 6 years (t=7 through t=12).The first deposit will be made a year from today. In addition, your grandfather just gave you $25,000n which you will deposit immediately (t=0). If the account earns 9% annually, how much will you have when you start your business 12 years from now?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...