how much must be deposited today into the following account in order to have a 110000 dollar college fund in 13 years. assume no additional deposits are made. an account with quarterly compounding and an APR of 7.86%. how much should be deposited today

Solution

Solution

Amount : 302587.59

Solution steps

Translate the problem into an equation:

A = 110000 (1 + \frac{0.0786}{4})^{4 \cdot 13}

110000 (1 + \frac{0.0786}{4})^{4 \cdot 13} = 302587.58898 \dots

Round to the nearest hundredth:

302587.59

Amount : 302587.59

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