Question

John is saving for his son's college education. If the savings account earns 3% interest compounded monthly, and he wants to have $60,000 in 10 years, what must the principal be? Round your answer to the nearest dollar.

Answer 1

Answer: $44,465.74

Explanation:

Use the compound interest formula and substitute the given values: $60,000=P(1+.0312)12(10). Simplify using the order of operations: $60,000=P(1.0025)120; P≈$44,465.74.

Answer 2

44466

Explanation:

Use the compound interest formula and substitute the values