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A newborn baby receives $2,000 on her birthday from her parents which is deposited into an...

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Advance Math

A newborn baby receives $2,000 on her birthday from her parentswhich is deposited into an account and invested in the VanguardS&P 500 Index Fund. That is $2,000 deposited at t=0.

Assume that on every subsequent birthday up to and including her16th birthday, the baby's parents deposit an additional $1,000 intothe same account and invest the money in the Vanguard S&P 500Index Fund. That is $1,000 deposited on each of t=1 through t=16.There are no more contributions.

Assume the investments in the Vanguard S&P 500 Index Fundgrow at 6% every year after all taxes and expenses. What will bethe balance in the account at the baby's 65th birthday, rounded towhole dollars?

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