To determine how much the couple should invest now, we can use the formula for compound interest:

$A = P \left(1 + \frac{r}{n}\right)^{nt}$

Where:

• $A$ is the amount of money to be accumulated (future value), which is $50,000.
• $P$ is the principal amount (initial investment) that we need to find.
• $r$ is the annual interest rate, which is 5.2% or 0.052.
• $n$ is the number of times the interest is compounded per year (daily compounding means $n = 365$).
• $t$ is the time in years, which is 17 years.

We need to solve for $P$. Rearranging the formula:

$P = \frac{A}{\left(1 + \frac{r}{n}\right)^{nt}}$

Now let's compute the value of $P$.The couple should invest $20,658 now in order to have $50,000 for their child's education 17 years from now, with a 5.2% interest rate compounded daily.

Would you like more details or have any questions?

Here are 5 related questions to explore further:

1. How does daily compounding affect the final investment amount compared to annual compounding?
2. What if the interest rate were 6% instead of 5.2%? How much would the investment change?
3. How does the investment period (17 years) impact the initial investment required?
4. What would be the required investment if the goal was to accumulate $100,000 instead of $50,000?
5. How would the formula change if the interest was compounded monthly instead of daily?

Tip: The more frequently interest is compounded, the faster your investment grows due to the effects of "interest on interest."