Robert Blanding’s employer offers its workers a two-month paid sabbatical every seven years. Robert, who just started working for the firm, plans to spend his sabbatical touring Europe at an estimated cost of $25,000. To finance his trip, Robert plans to make six annual end-of-year deposits of $2,500 each, starting this year, into an investment account earning 8% interest.
a. Will Robert’s account balance at the end of seven years be enough to pay for his trip?
b. Suppose Robert increases his annual contribution to $3,150. How large will his account balance be at the end of seven years?

  • CreatedMay 13, 2015
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