I need some help with this question! no answers just some help! Tyler begins funding a college education for his son


#1

I need some help with this question! no answers just some help! Tyler begins funding a college education for his son. He saves $1,000 the first year. Each year he saves 5% more than the previous year. How much money will be in the college fund at the end of 18 years?
PLEASE HELP ASAP

Answer:

image

The yearly savings is in geometric series:
1000,1000(1.05),1000(1.05)2,…1000,1000(1.05),1000(1.05)2,…

Using the sum for finite geometric series,
S=a1(1−rn1−r)S=a1(1−rn1−r)
where:
a1=1000,r=1.05a1=1000,r=1.05

I’ll post the answer anyway:

Therefore, at n = 18 (18 years),
S=$1000(1−1.05181−1.05)S=$1000(1−1.05181−1.05)

S≈$28132.38