SOLUTION: Mark and Kate are establishing a fund for their son's college education. They would like $60,000 in the fund at the end of 10 years What lump sum must they deposit in an account th

Question 1139387: Mark and Kate are establishing a fund for their son's college education. They would like $60,000 in the fund at the end of 10 years What lump sum must they deposit in an account that has an 8% annual interest rate and interest is compounded monthly? Round to the nearest cent
Answer by ikleyn(52832) (Show Source): You can put this solution on YOUR website!
.


60000 =  = ,


where X is the unknown lump sum.


From the equation,


    X =  = $27031.41.     ANSWER

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