document.write( "Question 1176143: You just celebrated your child’s first birthday. You decide that you want the best future for your child and want to set up a college fund for him/her. If you can put $160 per month into an account and assume you can get an APR of 7%, how much money will you have when the child turns 18 years old?\r
\n" ); document.write( "\n" ); document.write( " \r
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
Algebra.Com's Answer #802429 by ikleyn(52788)\"\" \"About 
You can put this solution on YOUR website!
.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "            To be correct,  the problem  MUST  SAY  that the account is compounded monthly.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "/////////////\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "If the payment is made at the end of each month, then it is the standard Ordinary Annuity saving plan.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "
\r\n" );
document.write( "Future value  FV = \"m%2A%28%28%281%2B%28r%2Fn%29%5Ent+%29-+1%29%2F%28r%2Fn%29%29\"\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "In this problem,  m = 160, n = 12 paying/compounding periods in an year, t = 17 years (not 18, as other tutor used in his calc.)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "P = \"160%2A%28%28%281%2B%280.07%2F12%29%29%5E%2812%2A17%29-1%29%2F%280.07%2F12%29%29\" = $62420.19.           ANSWER\r\n" );
document.write( "
\r
\n" ); document.write( "\n" ); document.write( "Solved.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "-----------------\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans\r
\n" ); document.write( "\n" ); document.write( "in this site.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
\n" );