Question 1058997: How much should a couple invest at the time their son is born to provide him with $50,000 for his college tuition. If the interest is 3.5% compounded quarterly(Assume he is 18 when he goes to college)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! How much should a couple invest at the time their son is born to provide him with $50,000 for his college tuition. If the interest is 3.5% compounded quarterly(Assume he is 18 when he goes to college)
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A(t) = P(1+(r/n))^(n*t)
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50,000 = P(1+0.035/4)^(4*18)
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50,000 = P(1.00875)^(72)
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50,000 = P(1.8725)
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Ans: P = $26,702.27
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Cheers,
Stan H.
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