SOLUTION: A couple just had a new child. How much should they invest now at 6.25% compounded daily to have $100,000 for the child's education 17 years from now. Compute the answer to the nea

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Question 748666: A couple just had a new child. How much should they invest now at 6.25% compounded daily to have $100,000 for the child's education 17 years from now. Compute the answer to the nearest dollar.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A couple just had a new child. How much should they invest now at 6.25% compounded daily to have $100,000 for the child's education 17 years from now. Compute the answer to the nearest dollar.
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A(t) = P(1+(r/n))^(nt)
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100,000 = P(1+(0.0625/365))^(365*17)
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P = 100,000/2.8933
P = 34562.22
==================Cheers,
Stan H.