document.write( "Question 1181741: David and Nicole have a new grandson. How much money should they invest now so that he will have $68000 for his college education in 18 years? The money is invested at 3.8% compounded quarterly. \n" ); document.write( "
Algebra.Com's Answer #811638 by mananth(16946)\"\" \"About 
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David and Nicole have a new grandson. How much money should they invest now so that he will have $68000 for his college education in 18 years? The money is invested at 3.8% compounded quarterly.\r
\n" ); document.write( "\n" ); document.write( "Amount = $68,000
\n" ); document.write( "time = 18 years
\n" ); document.write( "rate = 3.8% = 0.038
\n" ); document.write( "calculated 4 times a year\r
\n" ); document.write( "\n" ); document.write( "Principal P = x
\n" ); document.write( "Amount= 68000
\n" ); document.write( "years=n 18
\n" ); document.write( "compounded 4 times a year
\n" ); document.write( "Rate = 3.80 0.038 ... 0.038/4 =0.950
\n" ); document.write( "Amount = P*((n+r)/n)^n
\n" ); document.write( " 1.07
\n" ); document.write( "68000 = x *( 1 + r/n )^ n
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\n" ); document.write( "68000 = P ( 1 + 0.038 / 4 ) ^ 4 * 18
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\n" ); document.write( "68000 = P( 1.00950 )^ 72
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\n" ); document.write( "68000 /( 1.00950 )^ 72 = P
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\n" ); document.write( "P= $34423.39 \r
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