Exponential Functions

Question

A 529 Plan is a college-savings plan that allows relatives to invest money to pay for a child's future college tuition; the account grows tax-free. Lily wants to set up a 529 account for her new granddaughter and wants the account to grow to $48,000 over 20 years. She believes the account will earn 4% compounded quarterly. To the nearest dollar, how much will Lily need to invest in the account now?

         A(t)=P(1+r/n)nt .

Lily need to invest

Answer 1

48,000 = P(1 + .04/4)⁴⁽²⁰⁾

48,000 = P(1.01)⁸⁰

48,000 = P(2.21672)

$21,654 = P