SOLUTION: Mark and Kate are establishing a fund for their son's college education. What lump sum must they deposit in an account that gives 6% annual interest rate, compounded monthly, in or
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Question 374744: Mark and Kate are establishing a fund for their son's college education. What lump sum must they deposit in an account that gives 6% annual interest rate, compounded monthly, in order for them to have $65,000 in the fund at the end of 10 years?
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
65000=P(1+0.06/12)^(12*10)
P=65000/(1.005)^120
P=65000/1.819396734
P=35,726.13
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