Bill is saving for his son's college education. if the savings account earns 5% interest compounded monthly, and he wants to have $45,000 in 10 years, what must the principal be?

Total money that will be in the account in 10 years = 45000

Time period = 10 years

Rate of interest = 5% or 0.05

n = 12 (number o times the money is compounded)

Let the principal (p) be = x

Formula for compound interest =

Putting the values in the formula we get,

Hence, the principle amount should be approximately $27881.

trough to 50 re s thr bke   nedsh le. therfore te dkgj jdjvhvfhv fe sjfv adxcc 60.

step-by-step explanation: