document.write( "Question 1139774: Colton's parents want to create a college fund that pays $2,600.00 paid at the end of each quarter for 5 years, if interest is earned at a rate of 5%, compounded quarterly, how much needs to be invested now for this to happen.\r
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Algebra.Com's Answer #760300 by MathTherapy(10555) $\"\"$ $\"About$

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\n" ); document.write( "Colton's parents want to create a college fund that pays $2,600.00 paid at the end of each quarter for 5 years, if interest is earned at a rate of 5%, compounded quarterly, how much needs to be invested now for this to happen.\r
\n" ); document.write( "\n" ); document.write( "Colton's parents need to invest $________
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You're looking for the amount to invest \"today\" in order to receive $2,600 every quarter for 5 years, and compounded at 5% per year. 
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document.write( "The other person's answer is WRONG!! Therefore, IGNORE his answer.\r
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document.write( "This works the same way as purchasing a property for a certain price and then making monthly payments. However, in this case, the periodic payments to you would be made every quarter. 
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document.write( "You then use the formula for the present value of an ordinary annuity, or: , where: .
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document.write( "To realize your goal of receiving $2,600 per quarter for 5 years, @ an interest rate of 5% per annum, you need to invest . \n" );
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