SOLUTION: Amanda would like to have at least $125,000saved for her daughter education. If she invests $85,000 in an education account paying 10.15% interest compounded quarterly, will she re

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Question 1036145: Amanda would like to have at least $125,000saved for her daughter education. If she invests $85,000 in an education account paying 10.15% interest compounded quarterly, will she reach her goal in 18 years?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The formula is:+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
+P+=+85000+
+r+=+.1015+
+n+=+4+
+t+=+18+
-------------
+A+=+85000%2A%28+1+%2B+.1015%2F4+%29%5E%28+4%2A18+%29+
+A+=+85000%2A%28+1+%2B+.025375+%29%5E72+
+A+=+85000%2A%28+1.025375+%29%5E72+
+A+=+85000%2A6.075138+
+A+=+516386.75+
Yes, she will have $516,386.75 in 18 years
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check:
+A+=+85000%2A%28+1.025375+%29%5E72+
+516386.75+=+85000%2A%28+1.025375+%29%5E72+
+6.075138+=+1.025375%5E72+
+6.075138+=+6.075138+
OK