A) To save for her newborn son's college education, Kelli Peterson will invest $1,500 at the end of each year for the next 18 years. The interest rate she expects to earn on her investment is 9%. How much money will she have saved by the time her son turns 18

B). Briefly explain how does tax avoidance differ with tax evasion. please answer on question B

Answer for (A):

Answer : $ 61,952

Given

Annual Investment = $ 1,500

Interest Rate ( R%) = 9%

Time Period (N) = 18 Years

Each Year investment is made at end of year.

So, it is an Ordinary Annuity.

Future Value of Ordinary Annuity = ( Annual investment / R%) x ( ( 1+ R%)^N - 1 )

Future Value of Ordinary Annuity = ( $ 1,500 / 9%) x ( ( 1+ 9%)^18 - 1 )

Future Value of Ordinary Annuity = ( $ 16,666.67 x ( 4.7171 - 1 )

Future Value of Ordinary Annuity = ( $ 16,666.67 x 3.7171 ) = $ 61,952.0069

By the end of 18 years, total saving will be $ 61,952.0069

Question A already answered.

Please answer question B