Ann and tom want to establish a fund for their grandson's college education, what lump sum must they deposit at a 10% annual interest rate, compounded monthly, in order to have $20,000 in the fund at the end of 15 years? they should deposit (round up to the nearest cent)

so deposit amount is $4490.43

Step-by-step explanation:

Given data

rate = 10% annual = 10/12 % monthly = 10/1200 monthly

amount = $20000

time = 15 years = 15 × 12  month = 180 months

to find out

principal amount

solution

we know the amount formula that is given below

Amount = principal

now put all value amount , rate , time and find the principal

20000 = principal

principal = 20000 /

principal = 20000/ 4.453919

principal = 4490.4274

so deposit amount is $4490.43

question: how many people can she serve?

answer: she can serve 16.66666667 people. so she can only give 16 people a complete serving.

question: does she have enough ice cream for her guests?

answer: no. explanation: she only has enough for 16 people to have a full serving. however, she can give a 17th person a partial serving.