SOLUTION: New parents want to put a lump-sum into a money market to provide $41,000 in 18 years to help play for college tuition for their child. If the fund averges 8% per year compounded m
Algebra.Com
Question 442349: New parents want to put a lump-sum into a money market to provide $41,000 in 18 years to help play for college tuition for their child. If the fund averges 8% per year compounded monthly, how much should they invest now? use formula
P= S/(1+i)^n
so lost where do I start with this problem??
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
New parents want to put a lump-sum into a money market to provide $41,000 in 18 years to help play for college tuition for their child. If the fund averges 8% per year compounded monthly, how much should they invest now? use formula
P= S/(1+i)^n
-----------------------
P = 41000/(1+(0.08/4))^(4*18)
-----------------------------------
P = 41000/(4.1611)
P = $9853.07
===============
Cheers,
Stan H.
RELATED QUESTIONS
If Casey needs $95000 for college tuition in 13 years, what lump sum would he need to... (answered by rfer,MathTherapy)
how much do I need to invest at a rate of 6% for my 9 yr old twin's tuition if they both... (answered by josmiceli)
Wendy was awarded a volleyball scholarship to the University of Michigan, so on... (answered by greenestamps)
Anthony decides to help his new niece attend a private college in 18 years. The projected (answered by Theo)
What amount would parents of a 5-year-old boy need to deposit into an account today, so... (answered by nerdybill)
Natasha recently had a baby girl and wants to place her baby shower money into an account (answered by htmentor)
You have taken a job as a financial consultant, and your first clients arrive in your... (answered by bigbaby)
To save for college tuition, the parents of a preschooler invest $5000 in a bond that... (answered by Alan3354)
Theresa earns a full athletic scholarship for college so her parents have given her the... (answered by Boreal)