document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=885440>Question 885440</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You want to have a $25,000 college fund in 5 years. How much will you have to deposit now in an account with an APR of 8% with annual compounding </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #535158 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><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=535158\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You want to have a $25,000 college fund in 5 years. How much will you have to deposit now in an account with an APR of 8% with annual compounding<BR>\n" );
document.write( "***<BR>\n" );
document.write( "Compound Interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per compounding period, n=number of periods, A=amount after n-periods.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=To be determined<BR>\n" );
document.write( "i=8%<BR>\n" );
document.write( "n=5<BR>\n" );
document.write( "A=25000<BR>\n" );
document.write( "..<BR>\n" );
document.write( "25000=P(1+.08)^5<BR>\n" );
document.write( "25000=P(1.08)^5<BR>\n" );
document.write( "P=25000/(1.08^5)<BR>\n" );
document.write( "P=17014.58<BR>\n" );
document.write( "How much will you have to deposit now? $17,014.58<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );