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It is January 1, 2021, and you would like to invest so you can purchase a house in 8 years (January 1, 2029). You have
It is January 1, 2021, and you would like to invest so you can purchase a house in 8 years (January 1, 2029). You have $18,000 saved which you will invest today. You will also be able to invest $14,000 per year starting on January 1, 2022, with each yearly deposit occurring on January 1. You will make deposits up to and including January 1, 2029. If you are able to invest at a rate of 8.5% APR compounded quarterly, how much money will you have in your account on January 1, 2029, after your last deposit (before you purchase the house)?
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