Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.25 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to deposit $2,250, $8,150, $7,675, $6,125, and $12,345 into the account. How much will you have at the end of the five years?

$40773.49

Explanation:

Number of Years = 5    

Interest Rate = 7.25%    

Year             1                2                 3                4                5

Deposit Amount    2250         8150           7675          6125          12345

FV factors @ 10%1.32           1.23             1.15            1.07            1.00

FV of deposit         2976.95   10054.25   8828.23   6569.06   12345.00

Total Amount at the end of 5 years = 2976.95 + 10054.25 + 8828.23 + 6569.06 + 12345

Total Amount at the end of 5 years = $40773.49

gather the things you’ll need. it’s best to have a parent or guardian to you open an account. the parent or guardian can co-sign your account, which means that they’ll sponsor you. as co-signers, they’ll need to bring two forms of current photo id. if they only have one piece of photo id, their second id may be a current major credit card or gas card.