SOLUTION: Tuition of $1330 will be due when the spring term begins in 7 months. What amount should a student deposit today, at 3.96%, to have enough to pay the tuition? Please answer with

Question 1096880: Tuition of $1330 will be due when the spring term begins in 7 months. What amount should a student deposit today, at 3.96%, to have enough to pay the tuition?
Please answer with Full Details, including any calculator steps, etc.
Thank you very much.
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
Let n be the amount of the necessary deposit. Then:
1330=n*(1+0.0396)^7/12=n*(1.0396)^0.583333
ln 1330=ln n+ln(1.0396)^0.583333=ln n + 0.583333*ln(1.0396)
ln n=7.17027988695310846127677907654
e^ln n=n=e^7.17027988695310846127677907654
e^7.17027988695310846127677907654=$1300.208 needs to be deposited to fully fund tuition when the spring term begins
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