Ashley Is Planning to Attend College When She Graduates from High

Essay

Ashley is planning to attend college when she graduates from high school 7 years from now.She anticipates that she will need $20,000 at the beginning of each of the four college years to pay for tuition and fees,and have some spending money (i.e.,she needs to be able to withdraw $20,000 from savings four times,with the first withdrawal taking place 7 years from now).Ashley's father has promised to help her save for college by making 7 deposits of $7,000 each into an investment accounting earning 8 percent interest.His first payment comes a year from today.Will there be enough money in the account for Ashley to pay for her college expenses? Assume the rate of interest stays at 8 percent during the college years.