SOLUTION: Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, wil

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Question 1083711: Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, will she reach her goal in 18 years?
Found 3 solutions by addingup, MathTherapy, jim_thompson5910:
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
80,000(1+(0.0715/4)^(4*18) =
80,000 (1+(0.0179)^72) = 208,400 Becky will fall short of her goal by 250,000-208,400 = 41,600
Answer by MathTherapy(10551)   (Show Source): You can put this solution on YOUR website!
Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, will she reach her goal in 18 years? 
Correct answer: 

IGNORE all those who say otherwise! 

Answer by jim_thompson5910(35256)   (Show Source): You can put this solution on YOUR website!
 Plug P = 80000, r = 0.0715, n = 4, and t = 18 into the formula below





A = P*(1+r/n)^(n*t)

A = 80000(1+(0.0715/4))^(4*18)

A = 286,477.309093138

A = 286,477.31





This value is larger than $250,000 so she will meet her goal. 

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