You plan to save $7,000 each of the next 40 years, and invest that money in an account that pays 9% annual interest. In addition, you plan to pay for your child's 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, you currently have an outstanding loan with a balance of $15,000 and an annual interest rate of 9%. You plan to pay off that loan over the next few years. A timeline depicting this situation follows.

How much money will you have just after you make your last deposit forty years from today?
How much money will you have 5 years later (year 45) if you make no additional deposits or withdrawals?

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24-40 $7,000 Date Deposits Withdrawals Loan BalancS15 1-19 $7,000 20-23 $7.000 S30,000