Now, let’s imagine a trust was set up in your name when you were born to pay for your college in-full once you turn 18. The trust earns an interest rate of 3.5% compounded annually. Use the formula A = P (1 + i)n, where A is the value of the trust after n years, P is the initial investment, i is the interest rate represented as a decimal, and n is the number of years, to determine how much money should have been invested into the trust to cover your tuition and fees total for 5 years. Be sure to show your work for all calculations made. (Round final answer to the nearest cent, but otherwise don’t round any intermediate values.)
A = P(1 + i)n