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Dmitriy789 [7]
4 years ago
8

You would like to give your daughter $75,000 towards her college education 17 years from now. how much money must you set aside

today for this purpose if you can earn 8 percent on your investments?
Mathematics
1 answer:
garri49 [273]4 years ago
4 0
The formula is
A=p (1+r)^t
A future value 75000
p present value?
R interest rate 0.08
T time 17 years
Solve the formula for p
P=A ÷ (1+r)^t
P=75,000÷(1+0.08)^(17)
P=20,270.17
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