Originally Posted by

**Shifty98** Also, Isn't it 8, 5 and 2, not 8 6 and 3?

No.

When the 19 year old reaches 21, there will be 6 years left before 8th year.

When the 16 year old reaches 21, there will be 3 years left before 8th year.

After 2 years from the initial $50,000 deposit, the 19 year old gets his

share of $23,958.46.

So its futute value is for 6 years.

After 5 years from the initial $50,000 deposit, the 16 year old gets his

share of $23,958.46.

So its futute value is for 3 years.

After 8 years from the initial $50,000 deposit, the 13 year old gets his

share of $23,958.46 leaving account at zero.

So its futute value is for 0 years.

You can look at this as 4 different accounts.

1: 50,000 new account opened at year 0, untouched for 8 years

2: 23,956.40 new account opened at year 2; so 6 years to go

3: 23,956.40 new account opened at year 5; so 3 years to go

4: 23,956.40 new account opened at year 8; so 0 years to go

Account#1's future value = sum of future values of the other 3.