What lump sum do parents need to deposit in an account earning 9%, compounded monthly, so that it will grow to $60,000 for their son's college fund in 17 years? (Round your answer to the nearest cent.)
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- \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of times that interest is compounded per year. - \( t \) is the number of years the money is invested or borrowed. We need to Show more…
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