document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=560716>Question 560716</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help solve this problem. A couple plans to save for their childs' college education. What principal must be deposited when their child is born in order to have $100,000 when the child turns 18? Assume the money earns 4% interst compounded quarterly. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #364022 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=364022\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> What principal must be deposited when their child is born in order to have $100,000 when the child turns 18? Assume the money earns 4% interst compounded quarterly.<BR>\n" );
document.write( "-------<BR>\n" );
document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
document.write( "-----<BR>\n" );
document.write( "100,000 = P(1+(0.04/4))^(4*18)<BR>\n" );
document.write( "----<BR>\n" );
document.write( "100,000 = P(1.01)^(72)<BR>\n" );
document.write( "----<BR>\n" );
document.write( "100,000 = P(2.0471)<BR>\n" );
document.write( "P = $48,849.61<BR>\n" );
document.write( "=======================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( "======================= </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );