SOLUTION: Frank and Alexandria have a new grandson. How much money should they invest now so that he will have $64,000 for his college education in 18 years? The money is invested at 7.85% c

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Question 1205922: Frank and Alexandria have a new grandson. How much money should they invest now so that he will have $64,000 for his college education in 18 years? The money is invested at 7.85% compounded quarterly.
Answer by josgarithmetic(39614) About Me  (Show Source):
You can put this solution on YOUR website!
Eighteen years in quarter periods is 72 periods of compounding.

Invest N dollars now;
At 7.85% annually;

N%281%2B0.0785%2F4%29%5E72=64000