<PRE><B>Question 1181741</B>
David and Nicole have a new grandson. How much money should they invest now so that he will have $68000 for his college education in 18 years? The money is invested at 3.8% compounded quarterly.

Amount = $68,000
time = 18 years
rate = 3.8% = 0.038
calculated 4 times a year

Principal P =	x												
Amount=	68000												
years=n	18												
compounded	4	times a year											
Rate =	3.80		0.038	...        0.038/4 =0.950									
Amount =	P*((n+r)/n)^n												
											1.07		
68000	=	x	*(	1	+	r/n	)^	n					
													
													
68000	=	P	(	1	+	0.038	/	4	)	^	4	*	18
													
68000	=	P(	1.00950	)^	72								
													
68000	/(	1.00950	)^	72	=	P							
													
P=	$34423.39												


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