Having Received a Large Inheritance, a Child's Parents Wish to Establish

question 217

Essay

Having received a large inheritance, a child's parents wish to establish a trust for the child's college education. If 7 year(s) from now they need an estimated $90,000, how much should they set aside in trust now, if they invest the money at the given rate of interest. Round your answer to the nearest cent.
15.5 compounded quarterly
$__________
15.5 compounded continuously
$__________

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Definitions:

Arms-For-Hostages

Refers to the clandestine arrangement of trading arms for the release of hostages, notably associated with the Iran-Contra affair in the 1980s under the Reagan administration.

Oliver North

A former United States Marine Corps officer who was involved in the Iran-Contra Affair, a political scandal involving the secret sale of weapons to Iran and the diversion of funds to support Contra rebels in Nicaragua.

Yasir Arafat

A Palestinian political leader and the chairman of the Palestine Liberation Organization (PLO) from 1969 until his death in 2004, who played a central role in the Palestinian liberation movement.

Palestine Liberation Organization

A political and militant organization founded in 1964, claiming to represent the world's Palestinian people in their struggle for an independent state.