document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1186136>Question 1186136</A>: <I><SPAN STYLE=\"word-break: break-all;\"> QUESTION 1\r<BR>\n" );
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document.write( "A new mother would like to start a college fund for her newborn daughter.  She makes quarterly deposits of $500 into a college fund that earns 6% compounded quarterly for the next 18 years.  \r<BR>\n" );
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document.write( "How much will her daughter have available in her college fund when she turns 18?  $ <BR>\n" );
document.write( "  Round to the nearest dollar\r<BR>\n" );
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document.write( "What is total amount the mother deposited into the fund over the 18 years?  $<BR>\n" );
document.write( "   Round to the nearest dollar\r<BR>\n" );
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document.write( "How much interest was earned over the 18 years?   $<BR>\n" );
document.write( "     Round to the nearest dollar\r<BR>\n" );
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document.write( "Use the WHOLE DOLLAR AMOUNTS you entered in as your answers above. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #817025 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52786)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><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=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=817025\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
document.write( "A new mother would like to start a college fund for her newborn daughter. She makes quarterly deposits <BR>\n" );
document.write( "of $500 into a college fund that earns 6% compounded quarterly for the next 18 years.<BR>\n" );
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document.write( "How much will her daughter have available in her college fund when she turns 18? $<BR>\n" );
document.write( "Round to the nearest dollar<BR>\n" );
document.write( "What is total amount the mother deposited into the fund over the 18 years? $<BR>\n" );
document.write( "Round to the nearest dollar<BR>\n" );
document.write( "How much interest was earned over the 18 years? $<BR>\n" );
document.write( "Round to the nearest dollar<BR>\n" );
document.write( "Use the WHOLE DOLLAR AMOUNTS you entered in as your answers above.<BR>\n" );
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document.write( "<PRE STYLE=\"white-space: pre-wrap; white-space: -moz-pre-wrap; white-space: -pre-wrap; white-space: -o-pre-wrap; word-wrap: break-word;\">\r\n" );
document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29 ALIGN=MIDDLE  ALT=\"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >,    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is the quarterly payment (deposit); \r\n" );
document.write( "r is the quarterly effective percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 4, in this case).\r\n" );
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document.write( "Under the given conditions, P = 500;  r = 0.06/4;  n = 4*18 = 72.  \r\n" );
document.write( "So, according to the formula (1), she will get at the end of the 18-th year\r\n" );
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document.write( "    FV = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500%2A%28%28%281%2B0.06%2F4%29%5E%284%2A18%29-1%29%2F%28%280.06%2F4%29%29%29 ALIGN=MIDDLE  ALT=\"500%2A%28%28%281%2B0.06%2F4%29%5E%284%2A18%29-1%29%2F%28%280.06%2F4%29%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500%2A%28%281.015%5E72-1%29%2F0.015%29 ALIGN=MIDDLE  ALT=\"500%2A%28%281.015%5E72-1%29%2F0.015%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = $64038   (rounded).\r\n" );
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document.write( "Note that she will deposit only  4*18*$500 = $36,000.  The rest is what the account earns/accumulates in 18 years.\r\n" );
document.write( "</PRE>\r<BR>\n" );
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document.write( "On Ordinary Annuity saving plans, &nbsp;see the lessons\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A>\r<BR>\n" );
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document.write( "in this site.\r<BR>\n" );
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document.write( "The lessons contain &nbsp;EVERYTHING &nbsp;you need to know about this subject, &nbsp;in clear and compact form.\r<BR>\n" );
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document.write( "When you learn from these lessons, &nbsp;you will be able to do similar calculations in semi-automatic mode.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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