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?

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.

Steve · Answer

so, why not show your work? P(1+.0939)^10 = 20000 Now just solve for P.

Eliza · Answer

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.

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?

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?