Fareshta and Ahmad want to save to help send their child to college. Their plan is to put aside $50 every week. Suppose they deposit that money into an account that pays 3.5% APR compounded weekly.
How much money will be in the account in 18 years? (assume 52 weeks in a year)
What minimum initial lump sum deposit would they need to make today to have the same balance in 18 years if they weren't putting aside the $50 per week?
Lee et al., Math in Society, §2.3 Savings Plans, Exercise 17