Question 1056049: Becky would like to have $250,000 saved for her daughters college education. If she invests $85,000 in an education account paying 7.25% interest compound quarterly, will she reach her goal in 18 years ? Thank you.
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! P=Po{1+(r/n)^nt}; r is rate, n the number of compoundings per year, and t the number of years.
P=85,000{1+(r/n}^72, the raise to the 72nd power being the number of compoundings.
=85000{1+(0.0725/4))^72, and round at the end.
85000*3.645=$309,812.01
Yes, she will.
|
|
|
