Greg Lawrence anticipates he will need approximately $218,700 in 10 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today, at an interest rate of 7 percent compounded semiannually? (Please use only the following provided Table) (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Question

Greg Lawrence anticipates he will need approximately $218,700 in 10 years to cover his 3-year-old daughter’s college bills for a 4-year degree.    How much would he have to invest today, at an interest rate of 7 percent compounded semiannually? (Please use only the following provided Table) (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

anonymous · Answer

Er, can you use a calculator?

anonymous · Answer

Well, if you can, then here's the answer :
$$2,18,700 = P ( 1+ 7/200)^{8}$$
Where P= Principal / The amount Greg has to invest today.
x = 218700 / 1.316
x = 166185.4 ( Approx)