SOLUTION: A couple just had a baby. How much should they invest now at 5.5% compounded weekly in order to have $60,000 for the child�s education 19 years from now? Round to the nearest dolla

Question 833429: A couple just had a baby. How much should they invest now at 5.5% compounded weekly in order to have $60,000 for the child�s education 19 years from now? Round to the nearest dollar.
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
A couple just had a baby. How much should they invest now at 5.5% compounded weekly in order to have $60,000 for the child�s education 19 years from now? Round to the nearest dollar.
.
Compound interest formula:
A = P(1+r/n)^(nt)
where
A=60000
P is what we're looking for
r=.055
n=52
t=19
.
plug it all in
60000 = P(1+.055/52)^(52*19)
60000 = P(1+0.00105769231)^988
60000 = P(1.00105769231)^988
60000 = P(2.8418286765312691531872438722308)
60000/2.8418286765312691531872438722308 = P
$21113.17 = P
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