Question

Ann and Tom want to establish a fund for their​ grandson's college education. What lump sum must they deposit at a 9.39​% annual interest​ rate, compounded annually​, in order to have ​$20,000 in the fund at the end of 10 ​years?

I cannot get the right answer.

Answer 1

so, why not show your work?

P(1+.0939)^10 = 20000

Now just solve for P.

Answer 2

Anna and Tom want to establish a fund for their grandson's college education.What lump sum must they deposit at an 8% annual interest​ rate, compounded monthly ,in order to have ​$60,000 in the fund at the end of 10 ​years.