The compound interest formula can be rewritten as
P = A/(1 + r/n)nt.
Find the principal P that you need to invest on the day your child is born at 4.2% annual interest compounded quarterly to make your child a millionaire on his or her 21st birthday. (Round your answer to the nearest cent.)

The formula for compound interest is A = P(1 + r/n)^nt, where P is the principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.

Step-by-step explanation:

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The compound interest formula can be rewritten as P = A/(1 + r/n)nt. Find the principal P that you need to invest on the day your child is born at 4.2% annual interest compounded quarterly to make your child a millionaire on his or her 21st birthday. (Round your answer to the nearest cent.)

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The compound interest formula can be rewritten as
P = A/(1 + r/n)nt.
Find the principal P that you need to invest on the day your child is born at 4.2% annual interest compounded quarterly to make your child a millionaire on his or her 21st birthday. (Round your answer to the nearest cent.)