Joel and Asia have a new grandson. How much money should they invest now so that he will have 73,000 for his college education in 18 years? The money is invested at 4.7% compounded quarterly.

Solución

Joel and Asia have a new grandson. How much money should they invest now so that he will have 73, 000 for his college education in 18 years? The money is invested at 4.7% compounded quarterly.

Solución

Principal : 31481.22

Pasos de solución

Translate the problem into an equation:

73000 = P (1 + \frac{0.047}{4})^{4 \cdot 18}

Resolver para

P, 73000 = P (1 + \frac{0.047}{4})^{4 \cdot 18} : P = 31481.22

Principal : 31481.22

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