document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1078069>Question 1078069</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help me solve this word problem:<BR>\n" );
document.write( "Susie wants to set up a college fund for her daughter Mary. She calculates that Mary will need to withdraw $2,200 four times a year for the next four years. How much will Susie need to have in Mary's college fund if the fund pays 6%, compounded quarterly?\r<BR>\n" );
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document.write( "I have tried the annuity due and the ordinary annuity equations, but neither is giving me the correct answer. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #692780 by </B><A HREF=/tutors/aboutme.mpl?userid=jorel1380><B>jorel1380(3719)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jorel1380><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/cgi-bin/show-face.mpl?user=jorel1380><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=692780\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> To answer this question, we use the formula P=payout[(1+r)^n -1]/r(1+r)^n, where P is the principal, r is the periodic interest rate, and n is the total number of periods. So, for this example, we have:<BR>\n" );
document.write( "P=2200[(1+.06/4)^16 -1]/.06/4*(1+.06/4)^16<BR>\n" );
document.write( "P=591.76820483920722046352555284907<BR>\n" );
document.write( "P=$31088.7808997 as the amount needed to fund the annuity properly. &#9786;&#9786;&#9786;&#9786; </SPAN>\n" );
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