SOLUTION: You want to have a $60,000 college fund in 12 years. How much will you have to deposit now in an account with an interest rate of 5% and quarterly compounding?

Question 1033003: You want to have a $60,000 college fund in 12 years. How much will you have to deposit now in an account with an interest rate of 5% and quarterly compounding?
Found 2 solutions by addingup, MathTherapy:
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
A=P(1+r/n)^tn
60000=P(1+.05/4)^12�4
60000=P(1.1025)^48
60000=P(1.815) divide both sides by 1.1815
P=33057.85
Answer by MathTherapy(10549) (Show Source): You can put this solution on YOUR website!

You want to have a $60,000 college fund in 12 years. How much will you have to deposit now in an account with an interest rate of 5% and quarterly compounding?

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