document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=876723>Question 876723</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Since the birth of their daughter, the Tranters have deposited $450 every 3 months on an education savings plan. The interest rate is 7.5%/a compounded quarterly. What is the plans value when their daughter turns 17?  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #528978 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><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=528978\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Use this formula: \r<BR>\n" );
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document.write( "FV = P*( (1+i)^(n) - 1 )/i\r<BR>\n" );
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document.write( "where,\r<BR>\n" );
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document.write( "P = amount deposited per period<BR>\n" );
document.write( "i = interest rate per period<BR>\n" );
document.write( "n = number of periods\r<BR>\n" );
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document.write( "In this case,\r<BR>\n" );
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document.write( "P = 450<BR>\n" );
document.write( "i = 0.075/4 = 0.01875<BR>\n" );
document.write( "n = 4*17 = 68\r<BR>\n" );
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document.write( "FV = P*( (1+i)^(n) - 1 )/i\r<BR>\n" );
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document.write( "FV = 450*( (1+0.01875)^(68) - 1 )/0.01875\r<BR>\n" );
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document.write( "FV = 60880.8110324299\r<BR>\n" );
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document.write( "FV = 60880.81\r<BR>\n" );
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document.write( "They will have <font color=\"red\">$60,880.81</font> in the account 17 years later (assuming they keep up with every deposit)\r<BR>\n" );
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document.write( "See this article for more details:<BR>\n" );
document.write( "<a  rel=nofollow HREF=\"http://www.investopedia.com/terms/f/future-value-annuity.asp\">http://www.investopedia.com/terms/f/future-value-annuity.asp</a> </SPAN>\n" );
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