document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1158226>Question 1158226</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 42,000 when the child reaches the age of 18? Assume the money earns 9% interest, compounded quarterly. (Round the answer to two decimals.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #781142 by </B><A HREF=/tutors/aboutme.mpl?userid=Shin123><B>Shin123(626)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Shin123><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=Shin123><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=781142\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If P is the amount the couple invests when their baby is born, the money will have accumulated to <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%2A1.0225%5E%2818%2A4%29 ALIGN=MIDDLE  ALT=\"P%2A1.0225%5E%2818%2A4%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >. We set this value to $42,000. <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%2A1.0225%5E72=42000 ALIGN=MIDDLE  ALT=\"P%2A1.0225%5E72=42000\"   DISABLED_style= \"max-width:90%; height:auto;\" > Dividng both sides by <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.0225%5E72 ALIGN=MIDDLE  ALT=\"1.0225%5E72\"   DISABLED_style= \"max-width:90%; height:auto;\" >, we get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=42000%2F1.0225%5E72 ALIGN=MIDDLE  ALT=\"P=42000%2F1.0225%5E72\"   DISABLED_style= \"max-width:90%; height:auto;\" >. If you don't round until the end, we have <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=8462.34 ALIGN=MIDDLE  ALT=\"P=8462.34\"   DISABLED_style= \"max-width:90%; height:auto;\" >. Check: <TABLE  BORDER=1>\n" );
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document.write( " <TR><TD  ALIGN=MIDDLE>Solved by <A  rel=nofollow HREF=http://wiki.algebra.com/index.php/Tutoring_-_pluggable_solvers>pluggable</A> solver: <A  rel=nofollow HREF=future_value.solver>Finance: Calculate the Future Value of Money</A></TD></TR>\n" );
document.write( "<TR><TD  ALIGN=LEFT>If P is the principal. r the interest rate in decimal, n the number of times it is compounded per year, and y the number of years that the money is kept, the future value is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%2A%281%2Br%2Fn%29%5E%28y%2An%29 ALIGN=MIDDLE  ALT=\"P%2A%281%2Br%2Fn%29%5E%28y%2An%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >. Plugging in the numbers, we get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=8462.34%2A%281%2B0.09%2F4%29%5E%2818%2A4%29 ALIGN=MIDDLE  ALT=\"8462.34%2A%281%2B0.09%2F4%29%5E%2818%2A4%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >. Simplifying, we get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=8462.34%2A%281%2B0.0225%29%5E72=8462.34%2A1.0225%5E72=8462.34%2A4.96316599875666=highlight%28highlight_green%28highlight%2841999.9981579184%29%29%29 ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" > ,which can be rounded to <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%28highlight_green%28highlight%2842000%29%29%29 ALIGN=MIDDLE  ALT=\"highlight%28highlight_green%28highlight%2842000%29%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > dollars.</TD></TR>\n" );
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document.write( " <br/> Click <a  rel=nofollow HREF=future_value.solver>here</a> for the solver above. </SPAN>\n" );
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