SOLUTION: After the birth of their first child, the Bartons plan to set up an account to pay for her college education. The goal is to save $30,000 over the next 18 years, and their financia

Question 972037: After the birth of their first child, the Bartons plan to set up an account to pay for her college education. The goal is to save $30,000 over the next 18 years, and their financial planner suggests a bond fund that historically pays
6.2 % interest compounded monthly.
How much should they put into the fund now?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
30000= P {1 + .062/12}^216 interest over compounding period raised to the number of times compounded in 18 years
{1 + .062/12}^216}=3.04386
=$9855.90
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