document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1134162>Question 1134162</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $37,000 when the child reaches the age of 18? Assume the money earns 9% interest, compounded quarterly. (Round your answer to two decimal places.)<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 #751452 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=751452\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P=Po[(1+(r/n))]^72 -1 divided by (r/n).  The 72 is 4 quarterly deposits for 18 years.<BR>\n" );
document.write( "As an aside, $500 deposited quarterly would give $36,000 in 18 years, so the answer will be significantly less than that.\r<BR>\n" );
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document.write( "37000=Po(1+(.09/4))^72-1/(0.09/4)<BR>\n" );
document.write( "=Po*3.963/0.0225, but round only at the end.<BR>\n" );
document.write( "=Po*$176.14<BR>\n" );
document.write( "37000/176.14=$210.06, rounding here.\r<BR>\n" );
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document.write( "This is reasonable. </SPAN>\n" );
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