Automatic account builder set up with investment company

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Reference no: EM132002858

Pat and Sam own their own business, and have an “automatic account builder” set up with an investment company. At the end of each quarter, the company automatically deducts $2000 from their business checking account and puts it into a savings account which they have set up for their children's college tuition. The account earns 4.8% annual interest compounded quarterly. 1a. How much would the first $2000 deposit (just the first deposit) ultimately contribute to the amount in account at the end of 18 years? 1b. How much will be in the account, in total, after 18 years? 1c. How much of the account value after 18 years will be interest earned?

Reference no: EM132002858

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