Question

Tuition of $2700 is due when the spring term begins, in 9 months. What amount should a student deposit today, at 11%, to have enough to pay tuition?

Answer 1

t= 9 months= 9/12 year = 3/4 year  
r=11%
A=2700=P(1+r*t/100)=P(1+11*3/4)=P(1+8.25)

so,P= 2700/9.25 =291.89 thats the answer