SOLUTION: 2. At the time of her grandson's birth, a grandmother deposits $ 1000 in an account that pays 8.5% compounded quarterly. What will be the value of the account at the child's twenty

Question 1165868: 2. At the time of her grandson's birth, a grandmother deposits $ 1000 in an account that pays 8.5% compounded quarterly. 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?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
2. At the time of her grandson's birth, a grandmother deposits $ 1000 in an account that pays 8.5% compounded quarterly.
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 compound interest formula
where
A = amt after t time
Ao = initial amt ($1000)
r = interest rate in decimal form (.085)
n = compound period per year (4)
t = time in years (21)
:

A = 1000 * 5.84916458
A = $5,849.16
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