Question 1183129
How much money should they invest now so that he will have $43,000 for his college education in 18 years?
 The money is invested at 4.95% compounded semiannually.
:
Use the compound interest formula: {{{P(1+(r/n))^(nt)}}} = A, where
A = amt after time (43000)
P = initial amt
r = rate of annual interest (decimal form) (.0495)
n = number of compound times per year (2)
t = no. of years (18)
:
{{{P(1+(.0495/2))^(2*18)}}} = 43000
{{{P(1.02475)^36}}} = 43000
:
2.4112674P = 43000
P = {{{43000/2.4112674}}} 
:
P = $17,832.95 invested for 18 yrs to get $43,000