The parents of a child have just come into a lare inheritance and wish to establish a trust fund for the child's college education. If they estimate that they will need $100000 in 13 years, how much should they set aside in the trust now if they can invest the money at 8.5% per year compounded semiannually?

asked by msh

14 years ago

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1 answer

x(1. 0425)^26 = 100 000

solve for x

answered by Reiny

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Question

The parents of a child have just come into a lare inheritance and wish to establish a trust fund for the child's college education. If they estimate that they will need $100000 in 13 years, how much should they set aside in the trust now if they can invest the money at 8.5% per year compounded semiannually?

1 answer

x(1. 0425)^26 = 100 000

solve for x

Reiny · Answer

x(1. 0425)^26 = 100 000 solve for x