Question

The cost of attendance at State College is $19,500 for the first year. Devise a periodic savings plan that will allow you to make small deposits for 5 years at a simple interest rate of 1.5% and save enough to pay for the first year at the college.

Answer 1

Never mind that is the part of the plan duh.

Answer 2

Have you considered drawing a map?

First, we need to define "Small Deposit". If we do it annually, it's not going to be small. We shoudl do it monthly.

D = "Small Deposit"

I = Prt -- ALWAYS!!!!

The first deposit

D + D(0.015)(5) = D + D(0.015)(60/12)

The second deposit

D + D(0.015)(59/12)

Continue on in this way. Develop an EASY way to add them up.