SOLUTION: Ann and Tom want to establish a fund for their​ grandson's college education. What lump sum must they deposit at at 7.1​% annual interest​ rate, compounded quarte
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Question 1103169: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at at 7.1% annual interest rate, compounded quarterly, in order to have 30,000 in the fund at the end of 15 years?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1+r/n)^nt, compound interest formula
30000=Po(1+.071/4)^60; 4 compoundings per year for 15 years
30000=2.8738 Po, don't round and divide by the full unrounded number.
Po=$10438.90.
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