SOLUTION: Zoe needs 30,000 for college in 12 years. Will she have enough money for college if she invests 7,250 at 10% intrest, compounded annually, now?

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Question 755431: Zoe needs 30,000 for college in 12 years. Will she have enough money for college if she invests 7,250 at 10% intrest, compounded annually, now?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Zoe needs 30,000 for college in 12 years. Will she have enough money for college if she invests 7,250 at 10% intrest, compounded annually, now?
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A(t) = P(1+(r/n))^(nt)
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A(12) = 7250(1+(0.1/1))^(1*12)
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= 7250(1.1)^12
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= 7250*3.1384
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= $22,753.61
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Not going to have enough
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cheers,
Stan H.
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