Quandaries and Queries Fran will begin attending longview college 1 year from now and will attend for the next 4 years. Her annual cost will be \$14,000.00 which her parents have agreed to pay. Frans parents have saved enough money to meet Frans needs. How much must they invest in an account paying 10% interest compounded annually in order to receive \$14,000.00 at the end of each of the next 4 years, having nothing left in the account at the end of that time? Hi Thomas, At the beginning of Fran's last year of college her parents will need \$14,000 for her final year's expenses. To obtain this they will need to invest a certain amount, \$A, at the beginning of her third year at 10% for one year. Thus A 1.10 = \$14,000 and hence A = \$14,000/1.10 = \$12,727.27 Thus at the beginning of Fran's third year they need \$14,000 for her expenses in the third year and \$12,727.27 to invest for her fourth year. Therefore they need \$14,000 + \$12,727.27 = \$26,727.27 How much will they have to invest at the end of Fran's second year to earn \$26,727.27 in one year? Penny Go to Math Central