Question

In 7 years, a father wants to accumulate $65000 to pay for his daughter’s college expenses. If he can get 10% interest, compounded quarterly, how much must he invest now to achieve his goal?

Answer 1

Answer: 45,550

Step-by-step explanation: For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%.

How much is the interest after 4 years?

Use the following simple interest formula:

I = p× r × t