SOLUTION: Suppose that a couple invested ₱50,000 in an account when their child was born, to prepare for the child’s college education. If the average interest rate is 4.4% compounded

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: Suppose that a couple invested ₱50,000 in an account when their child was born, to prepare for the child’s college education. If the average interest rate is 4.4% compounded       Log On


   

Question 1174938: Suppose that a couple invested ₱50,000 in an account when their child was born,
to prepare for the child’s college education. If the average interest rate is 4.4%
compounded annually, (a)give an exponential model for the situation, and (b) will
the money be doubled by the time the child turns 18 years old, the money has
more than doubled since the amount exceeded ₱100,000.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal = $50,000
r= annual rate = .044
n= periods per year = 1
t= years = 18
A%28t%29+=+50000%281.044%29%5E%2818%29 = $108,537.29 Rounded to the nearest penny)
b) Yes, it will double
Wish You the Best in your Studies.