A newborn child receives a $9000 gift toward a college education from her grandparents. How much will the $9000 be worth in 17 years if it is invested at 4.9% compounded quarterly?

Question

8951 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2018-07-17T01:43:34

#"$20,597.38"#

We can use the formula:

#A=P(1+r/n)^(nt)#

where:

#A="Future Amount"#
#P="Principal"#
#r="interest rate"#
#n="number of times per year compounding happens"#
#t="number of years"#

We have:

#A=9000(1+0.049/4)^((4xx17))#

#A=9000(1.01225)^68#

#A~~$20597.38#