SOLUTION: Jessie is the beneficiary of a trust fund established for him 21 years ago at his birth. If the original amount placed in trust was $5,000, how much will he receive if the money ha

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Question 1148340: Jessie is the beneficiary of a trust fund established for him 21 years ago at his birth. If the original amount placed in trust was $5,000, how much will he receive if the money has earned interest at the rate of 8%/year compounded annually? Compounded quarterly? Compounded monthly?
Answer by ikleyn(52786) About Me  (Show Source):
You can put this solution on YOUR website!
.

He will receive


    5000%2A%281%2B0.08%29%5E21  dollars, if compounded annually;

    5000%2A%281%2B0.08%2F4%29%5E%2821%2A4%29 dollars if compounded quarterly;

    5000%2A%281%2B0.08%2F12%29%5E%2821%2A12%29 dollars if compounded monthly.

Use a calculator.