SOLUTION: You want to have $25,000 college fund in 5 years. How much will you have to deposit now in an account with an interest rate of 3.3% and annual compounding?

SOLUTION: You want to have $25,000 college fund in 5 years. How much will you have to deposit now in an account with an interest rate of 3.3% and annual compounding?

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Question 1032998: You want to have $25,000 college fund in 5 years. How much will you have to deposit now in an account with an interest rate of 3.3% and annual compounding?
Answer by Cromlix(4381) (Show Source): You can put this solution on YOUR website!
Hi there,
100% + 3.3% = 103.3%
103.3% = 103.3/100 = 1.033
X * 1.033^5 = 25000
X = 25000/1.033^5
X = $21,253.88
This is what would have
had to deposited.
Hope this helps :-)
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