Jenkis decides to set aside 75 at the end of each month for

Jenkis decides to set aside $75 at the end of each month for his child’s college education. If the child were to be born today, how much will be available for its college education when s/he turns 19 years old? Assume an interest rate of 6% compounded monthly.

Solution

Amount = Principal (1+rate/n)^nt

Amount = 75*12*19(1+.06/12)^12*19

17100(1.005)²²⁸

17100*3.117344

53306.58