I have tried everything so far and can't seem to get the right answer 1450.53 dollars.
I have tried P_o=P[(1-(1+i)^-n)(1+i)]/i and set the answer equals to Pn=P(1+i)^(n)-1/i
where my i=0.10/12 for all cases and n=4*12 for the first equation to find P_o.And n=18*12 for finding P,second equation.Could someone help me out I have been working on this for a few hours.
A college education is expected to cost $20,000 per year in 18 years. Howmuch money should be deposited at the end of each year for 18 years in anaccount earning 10% compounded monthly so that the balance of the accountafter 18 years covers the cost of a college education?
I have tried P_o=P[(1-(1+i)^-n)(1+i)]/i and set the answer equals to Pn=P(1+i)^(n)-1/i
where my i=0.10/12 for all cases and n=4*12 for the first equation to find P_o.And n=18*12 for finding P,second equation.Could someone help me out I have been working on this for a few hours.
A college education is expected to cost $20,000 per year in 18 years. Howmuch money should be deposited at the end of each year for 18 years in anaccount earning 10% compounded monthly so that the balance of the accountafter 18 years covers the cost of a college education?