9.2 You believe that you can set aside $1,500 each year for…
9.2 You believe that you can set aside $1,500 each year for the next four years, starting immediately, in order to start your small business. Your friend Bob promises that he’ll pay you back $5,000 that he owes you three years from now, so you will add that to the payment you make at the start of year 4. Then, at the start of year 5, you will increase your payment to $1,500; in year 6, to $1,600; and in year 7, to $1,700. Every payment will be deposited in a fund bearing 4% interest compounded annually. How much will you have set aside for your boat at the end of the seventh year?