Question

At the time of her grandson’s birth, a grandmother deposits $12,000 in an account that pays 8.5% compounded monthly. What will be the value of the account at the child’s twenty-first birthday, assuming that no other desposits or withdrawals are made during this period?

At the time of her grandson's birth, a grandmother deposits 512.000 in an account that pays 85% compounded monthly What will be the value of the account at the child's twenty first birthday, assuming that no other deposits or withdrawals are made during this period? The value of the account will be $ (Round to the nearest dollar as needed) Enter your answer in the answer box. 1 de 9

Answer 1

Srandmothen deposit $12,000 in an aecount that compounded moniy 8.5%0 pay's per annum nitial amount, I-$ 12,000 rate of interust, q- - x Since 8-57. pen compounded wenlilg 8.5 12 100 annum i 0.00408333 the amount is Campo unded montly For 21 years al be compounded now 30, the total no. o times ,the in-no ti mer compounded x time 12 メ21 2 52 at ehild's 21st birthday the valae of account will be I (1+),ahere f Final value 252 12,000 (1t0.0070838) 252 1 00 70 8333 2,000 71,066.32787 471,066 (round to nearest dollan) The value of the aeaount will be 1,066