Felix will need $10,000 per year for four years to pay for tuition. How much will Felixs

Question:

Felix will need $10,000 per year for four years to pay for tuition. How much will Felix’s parents have to invest at the end of each year for the eight years before he begins his studies if their savings earn at 7 percent per year? Assume the tuition payments occur at the end of each year.

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...