Answer:
These payments worth $9,346 to me when I first start college.
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.In this question the monthly payment of $220 for 4 years at 0.51% per month is an annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $220
r = rate of return = 0.51%
n = number of months = 4 years x 12 months each year = 48 months
PV of annuity = $220 x [ ( 1 - ( 1 + 0.0051 )^-48 ) / 0.0051 ]
PV of annuity = $9,345.76 = $9,346
