SOLUTION: A mother invests $3000 in a bank account at the time of her daughter's birth. The interest is compounded quarterly at a rate of 12%. What will be the value of the daughter's accoun

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: A mother invests $3000 in a bank account at the time of her daughter's birth. The interest is compounded quarterly at a rate of 12%. What will be the value of the daughter's accoun      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 172037: A mother invests $3000 in a bank account at the time of her daughter's birth. The interest is compounded quarterly at a rate of 12%. What will be the value of the daughter's account on her twentieth birthday, assuming no other deposits or withdrawals are made during this period?
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!
This follows F=P%281%2B%28i%2Fm%29%29%5E%28mn%29
where-------->system%28F=FutureValue%2C+P=Principal%2Ci=interest%2Cm=CompundedPerYear%2Cn=years%29
So, F=3000%281%2B%28.12%2F4%29%29%5E%284%2A20%29
F=3000%2A%281.03%29%5E80
highlight%28F=31922.67%29
Thank you,
Jojo