SOLUTION: In order to help pay for college, the grandparents of a child invest $2,100 in a bond that pays 5% interest compounded quarterly. How much money will there be in 6 years?

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Question 1035513: In order to help pay for college, the grandparents of a child invest $2,100 in a bond that pays 5% interest compounded quarterly. How much money will there be in 6 years?
Found 2 solutions by Alan3354, josmiceli:
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
In order to help pay for college, the grandparents of a child invest $2,100 in a bond that pays 5% interest compounded quarterly. How much money will there be in 6 years?
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r = 0.05/4 (quarterly interest)
t = 24 (24 periods)
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FV = 2100*(1 + r)^t

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
+P+=+2100+
+r+=+.05+
+n+=+4+
+t+=+6+
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+A+=+2100%2A%28+1+%2B+.05%2F4+%29%5E%28+4%2A6+%29+
+A+=+2100%2A1.0125%5E24+
+A+=+2100%2A1.34735+
+A+=+2829.44+
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In 6 years there will be $2,829.44