Question

To save for her newborn son's college education, lea wilson will invest $1,000 at the beginning of each year for the next 18 years. the interest rate is 12 percent. what is the future value? use appendix
c.

Answer 1

You need to use this statement:
$Fn =P(1+r)^n$
where:
P- the amount of initial capital
Fn - final capital after n-years
r- annual effective interest rate
n-number of years

Generally we need to put $1000 for the next 18 years so this statement looks like this:

$F_{n-1} =P(1+r)^n^-^1$
and the last invest
$F_{1}=P(1+r)^1$

So we need to add all years of capital
$S=F_{n}+F_{n-1} + F_{n-2} + ... + F_{2}+F_{1}$

$S=P(1+r)^n + P(1+r)^2+...+P(1+r)^n^-^2 +P(1+r)^n^-^1$$+P(1+r)^n$

And finally we get this statement:
$S=P(1+r) \frac{(1+r)^n-1}{(1+r)-1}$

and after all put values we get:

$S=1000 \frac{(1+0,12)^1^8-1}{(1+0,12)-1} =55749,71$$

 I don't know what value of tax you have so it is gross value.  You need to sybtract tax from this received value