SOLUTION: If your grandparents deposited $5000 in a certificate on the day you were born at a rate of 4.5%, how much money would you have to start college after your 18th birthday if it was
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Question 193162: If your grandparents deposited $5000 in a certificate on the day you were born at a rate of 4.5%, how much money would you have to start college after your 18th birthday if it was compounded monthly? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! If your grandparents deposited $5000 in a certificate on the day you were born at a rate of 4.5%, how much money would you have to start college after your 18th birthday if it was compounded monthly?
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A(t) = P(1+(r/n))^(nt)
A(18) = 5000(1+(0.045/12))^(12*18)
A(18) = 5000*2.24451
A(18) = $11222.53
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Cheers,
Stan H.
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