Help!
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10.5% annual interest rate, compound quartly, in order to have $50,000 at the end of 15 years?

Question

Help!
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10.5% annual interest rate, compound quartly, in order to have $50,000 at the end of 15 years?

anonymous · Answer

$$50000=P\left(1+\frac{.105}{4}\right)^{60}$$ is a start
solve for P

anonymous · Answer

pretty much of a calculator exercise, as 
$$P=\frac{50,000}{\left(1+\frac{.105}{4}\right)^{60}}$$

anonymous · Answer

a better question is where in the world are you going to get 10.5% interest?!

anonymous · Answer

haha yeah! what's up with that.

anonymous · Answer

so far I'm getting 4.73
then I get 10570.82

anonymous · Answer

is 10570.82 correct?