document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1099182>Question 1099182</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A couple just had a baby. How much should they invest now at 5.1% compounded daily in order to have &#8203;$35,000 for the&#8203; child's education 18  years from&#8203; now? Compute the answer to the nearest dollar.&#8203; (Assume a&#8203; 365-day year.)<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #713601 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=713601\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 5.1% compounded daily=0.00013972602 per day<BR>\n" );
document.write( "18 x 365= 6570 compounding periods<BR>\n" );
document.write( "FV=P(1+r)^qt where FV is future value, P is the principal (or initial deposit), r is the periodic interest rate, q is the number of periods in a year, and t is the time, in years. So:<BR>\n" );
document.write( "35,000= P * (1.00013972602)^6570 <BR>\n" );
document.write( "P=$13977 needs to be deposited initially in order to achieve the desired goal<BR>\n" );
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