Question

Mark is saving for his son's college education. If the savings account earns 9% interest compounded quarterly, and he wants to have $80,000 in 18 years, what must the principal be?

Answer 1

The answer is $16119 my friend!

Explanation:

A = p(1+r/n)^nt

80000 = p(1+0.09/4)^4x18

80000 = p(1.0225)^72

p = 16118.74

Hope I helped you!