Ann and Tom want to establish a fund for their grandson's college education . What lump sum must they deposit at an 8.1% annual interest rate, compound annually, in order to have $20,000 in the fund at the end of 10 years?

Question

anonymous · Answer

See, use the same formula here..

A = 20, 000

n = Compound Annually means one time in a year.. n = 1

t = 10 years

r = 0.081

P = ?????

Can you solve now??

anonymous · Answer

sorry I'm so late. I got 9178.5284..

anonymous · Answer

Yes you got that right...