document.write( "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? \n" ); document.write( "

Algebra.Com's Answer #790347 by ankor@dixie-net.com(22740) $\"\"$ $\"About$

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2. At the time of her grandson's birth, a grandmother deposits $ 1000 in an account that pays 8.5% compounded quarterly.
\n" ); document.write( " 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?
\n" ); document.write( ":
\n" ); document.write( "The compound interest formula
\n" ); document.write( " $\"A+=+Ao%2A%281%2B%28r%2Fn%29%29%5E%28n%2At%29\"$ where
\n" ); document.write( "A = amt after t time
\n" ); document.write( "Ao = initial amt ($1000)
\n" ); document.write( "r = interest rate in decimal form (.085)
\n" ); document.write( "n = compound period per year (4)
\n" ); document.write( "t = time in years (21)
\n" ); document.write( ":
\n" ); document.write( " $\"A+=+1000%2A%281%2B%28.085%2F4%29%29%5E%284%2A21%29\"$
\n" ); document.write( " $\"A+=+1000%2A%281.02125%29%5E84\"$
\n" ); document.write( "A = 1000 * 5.84916458
\n" ); document.write( "A = $5,849.16 \n" ); document.write( "

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