document.write( "Question 467405: A grandmother is looking for a plan to finance her new grandchild’s college education. She has $25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is to earn compound interest.\r \n" );
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document.write( "Calculate the future value of the investment. You must use the advertised interest rate,which is 3.40% the number of compounding periods per year,which and the time the funds will be invested. If you are not given the number of compounding periods a year, make it up. \r \n" );
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document.write( " The principal is $25,000. This is P. \n" );
document.write( " Research the annual interest rate for your investment. This is r. \n" );
document.write( " State the time in years for the investment (as in when the new grandchild will be attending college) which is 18. This is t. \n" );
document.write( " State the number of compounding periods per year.2, This is n. \n" );
document.write( " Model the future value of Grandma’s investment as an exponential function, with time as the independent variable: F(t) = P(1 + r/n) nt \n" );
document.write( " State the future value of Grandma’s investment. \n" );
document.write( " Use the internet or library resources to find the average cost of a college education today; will grandma’s investment be able to cover the cost in today’s dollars; what about in the future? \n" );
document.write( " Summarize your findings in writing using proper style and grammar.\r \n" );
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