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A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $42,000 when the child reaches the age of 18? Assume the money earns 7% interest, compounded quarterly. (Round your answer to two decimal places.)

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  1. find P such that
    P(1 + .07/4)^(4*18) = 42000

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  2. P(1.0175^72) = 42000

    solve for P

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