SOLUTION: Please solve this word problem: How much money should parents deposit today in a college fund earning 5% compound quarterly, so that it will accumulate to $150,000.00 in 15 years?

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Question 280019: Please solve this word problem: How much money should parents deposit today in a college fund earning 5% compound quarterly, so that it will accumulate to $150,000.00 in 15 years?
Found 3 solutions by mananth, ikleyn, josgarithmetic:
Answer by mananth(16949)   (Show Source):
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Please solve this word problem: How much money should parents deposit today in a college fund earning 5% compound quarterly, so that it will accumulate to $150,000.00 in 15 years?
a= (p+r/4)*15
150000 = (p+5/4)*15
150000/15 -5/4= p
=9998.75

Answer by ikleyn(53742)   (Show Source):
You can put this solution on YOUR website!
.
Please solve this word problem: How much money should parents deposit today in a college fund
earning 5% compound quarterly, so that it will accumulate to $150,000.00 in 15 years?
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        The basic formula and the calculations in the post by @mananth are incorrect.
        I came to bring a correct solution.

Use the formula of the future value of a discretely compounded account 150000 = . where P is the unknown deposited value. From this formula P = = 71185.14 dollars. ANSWER. $71,185.14 should be deposited today.

Solved correctly.

Answer by josgarithmetic(39790)   (Show Source):
You can put this solution on YOUR website!
Quarterly rate is 1.25%.
Fifteen years for the investment is 60 compounding periods.

p, how much money to invest today