Question

Is my answer correct? :)

Hector and Yolanda want to establish a fund for their grandson's college education. What lump sum must they deposit at a 12.8% annual interest rate, compounded annually, in order to have $40000 in the fund at the end of 10 years?

My answer is 11994.14

Answer 1

correct :)

Answer 2

thanks!

Answer 3

you used this forumula right?

40,000 = x[1+.128]^10

Answer 4

yes