Question 442349: New parents want to put a lump-sum into a money market to provide $41,000 in 18 years to help play for college tuition for their child. If the fund averges 8% per year compounded monthly, how much should they invest now? use formula
P= S/(1+i)^n
so lost where do I start with this problem??
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! New parents want to put a lump-sum into a money market to provide $41,000 in 18 years to help play for college tuition for their child. If the fund averges 8% per year compounded monthly, how much should they invest now? use formula
P= S/(1+i)^n
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P = 41000/(1+(0.08/4))^(4*18)
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P = 41000/(4.1611)
P = $9853.07
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Cheers,
Stan H.
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