SOLUTION: Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, wil

Algebra ->  Numeric Fractions Calculators, Lesson and Practice -> SOLUTION: Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, wil      Log On


   

Question 1083711: Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, will she reach her goal in 18 years?
Found 3 solutions by addingup, MathTherapy, jim_thompson5910:
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
80,000(1+(0.0715/4)^(4*18) =
80,000 (1+(0.0179)^72) = 208,400 Becky will fall short of her goal by 250,000-208,400 = 41,600

Answer by MathTherapy(10551) About Me  (Show Source):
You can put this solution on YOUR website!
Becky would like to have at least $250,000 saved for her daughters college education. If she invests $80,000 in an education account paying 7.15% interest compounded quarterly, will she reach her goal in 18 years? 
Correct answer: highlight_green%28matrix%281%2C5%2C+%22She%27ll%22%2C+have%2C+more%2C+than%2C+enough%29%29

IGNORE all those who say otherwise!

Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Plug P = 80000, r = 0.0715, n = 4, and t = 18 into the formula below

A = P*(1+r/n)^(n*t)
A = 80000(1+(0.0715/4))^(4*18)
A = 286,477.309093138
A = 286,477.31

This value is larger than $250,000 so she will meet her goal.