document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1132927>Question 1132927</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Higher education. The table lists thje average costs of attending a four year college in the U.S. during the 2005-2006 school year\r<BR>\n" );
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document.write( "College Sector            Tuition and fees      room and board\r<BR>\n" );
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document.write( "1-year public               $5941                       $6636\r<BR>\n" );
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document.write( "1-year private             $21,235                    $7,791\r<BR>\n" );
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document.write( "Russ's parents invested money to a savings account earning an average of 4.5 percent interest, compounded monthly.\r<BR>\n" );
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document.write( "After 15 years they have exactly the right amount to cover the tuition, fees, room, and board for Russ's first year at a public college. What was their initial investment? Round your answer to the nearest dollar.\r<BR>\n" );
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document.write( "What I tried:<BR>\n" );
document.write( "One year in public is 5941+6636=12577<BR>\n" );
document.write( "I plugged into the compound interest formula: A=P(1+(r/n))^nt which is<BR>\n" );
document.write( "12577=P(1+0.045/12)^12(5)<BR>\n" );
document.write( "12577=P(1.00375)^60<BR>\n" );
document.write( "12577=1.2517958205P<BR>\n" );
document.write( "10031 is about P<BR>\n" );
document.write( "I think I did something wrong, as the answer doesn't make sense.<BR>\n" );
document.write( "Thanks\r<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 #750100 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><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=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=750100\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 5941+6636 = 12577<BR>\n" );
document.write( "P(1+(0.045/12))^12*15 = 12577<BR>\n" );
document.write( "P(1.00375)^180 = 12577<BR>\n" );
document.write( "P*1.9616 = 12577<BR>\n" );
document.write( "P = 6411.60 <BR>\n" );
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document.write( "NOTE: In your calculations you used 5 years but in the problem you posted you say 15 years, so I used 15 years. By the way, there's nothing wrong with your calculations.<BR>\n" );
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document.write( "Here it is with 5 years:<BR>\n" );
document.write( "P(1+(0.045/12))^12*5<BR>\n" );
document.write( "P(1.00375)^60<BR>\n" );
document.write( "P*1.2518 = 12,557<BR>\n" );
document.write( "P = 10,031.16 (same answer you got, this is how much they initially saved)\r<BR>\n" );
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