SOLUTION: In order to help pay for college, the grandparents of a child invest $3,500 in a bond that pays 7.5% interest compounded quarterly. How much money will there be in 5 years?
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Question 1026819: In order to help pay for college, the grandparents of a child invest $3,500 in a bond that pays 7.5% interest compounded quarterly. How much money will there be in 5 years? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! In order to help pay for college, the grandparents of a child invest $3,500 in a bond that pays 7.5% interest compounded quarterly. How much money will there be in 5 years?
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A(t) = P(1+(r/n))^(nt)
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A(5) = 3500(1+(0.075/4))^(4*5) = $5074.81
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Cheers,
Stan H.
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