Question 1210581: At the time of her grandson's birth, a grandmother deposits
$ 11,000
$11,000 in an account that pays
6 %
6% compounded monthly. 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?
The value of the account will be $?
Found 2 solutions by timofer, ikleyn:
Answer by timofer(155)   (Show Source):
Answer by ikleyn(53742)  (Show Source):
You can put this solution on YOUR website! .
Money_Word_Problems/1210581: At the time of her grandson's birth, a grandmother deposits
$ 11,000
$11,000 in an account that pays
6 %
6% compounded monthly. 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?
The value of the account will be $?
~~~~~~~~~~~~~~~~~~~~~~~~~~
First birthday is after 1 year from the day of the birth.
Second birthday is after 2 years from the day of the birth.
. . . . . . . .
21-th birthday is after 21 year from the day of the birth.
So, the question is about the Future value of the deposit after 21 year.
The formula to calculate is
FV =  = 38658.08 dollars (rounded).
ANSWER. Future value at the twenty-first birthday will be 38,658.08 dollars.
Solved.
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