question archive A couple plans to save for their child's college education
A couple plans to save for their child's college education
Subject:MathPrice:2.87 Bought7
A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $36,000 when the child reaches the age of 18? Assume the money earns 9% interest, compounded quarterly. (Round your answer to two decimal places.)
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Answer:
Principal must be deposited by the parents when their child is born in order to have $36,000 when the child reaches the age of 18 is $ 7253.43
Step-by-step explanation
we have A=$36000
r=0.09
n=4 quarterly
t=18 years
A=P(1+r/n)nt
36000=P*4.963166
so P=7253.43
Principal must be deposited by the parents when their child is born in order to have $36,000 when the child reaches the age of 18 is $ 7253.43
