Here is the example from page 270 in the textbook: A new parent wants to have $20,000 in his child's college fund when his infant is ready for college in 18 years. How much must he invest now at 8% compounded annually to achieve this goal?Solution

Usen= 18,A= $20,000, andr= 0.08 in the present value formula:

An investment today of $5004.98 will amount to $20,000 in 18 years.