SOLUTION: When Sophie was born her parents invested a sum of $20,000 in her college fund. They invested it at a nominal annual rate of 5% with interest compounded quarterly. Which equation c

Question 1143182: When Sophie was born her parents invested a sum of $20,000 in her college fund. They invested it at a nominal annual rate of 5% with interest compounded quarterly. Which equation could be used to find the number of dollars, y, in the account, after 18 years no other deposits or withdrawals assuming are made?
Answer by ikleyn(52814) (Show Source): You can put this solution on YOUR website!
.

The equation is 


y = .


where y is the future value; 0.05 = 5%;  4 is the number of compounds per year.

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