document.write( "Question 1084193: When Naomi was born, her parents invested $1000 in a fixed rate savings account at a rate of 7% compounded monthly. Naomi will receive when she turns 18 to help with her college expenses. What amount of money will she receive. Round your answer to the nearest dollar. \n" ); document.write( "

Algebra.Com's Answer #698295 by Boreal(15235) $\"\"$ $\"About$

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A=Ao(1+(.07/12))^216, where Ao=$1000 and 216 comes from 18 years*12 months/year, the number of compoundings.
\n" ); document.write( "calculator, start with 1+(.07/12), raise it to the 216 power, and then multiply by 1000.
\n" ); document.write( "$3512.54 or $3513.
\n" ); document.write( "Check: rule of 72 for doubling is 72/interest rate =years needed or 72/7=10.3
\n" ); document.write( "Not quite 2 doublings, which means not quite $3000. This is a reasonable answer. \n" ); document.write( "

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