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Armando and Mikayla have a new grandson. How much money should they invest now so that he
will have $80,000 for his college education in 18 years? The money is invested at 8% compounded
annually

Respuesta :

sqdancefan

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Answer:

  $20,020

Step-by-step explanation:

The future value formula is helpful.

  FV = P(1 +r)^t

  $80,000 = P(1.08^18) = 3.9960195P

  P = $80,000/3.9960195 = $20,019.92

They should invest about $20,020 now.

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