Question 446881: camille receives an inheritance of $35,000(after taxes). she decides to invest all of it in an education account for her month-old daughter. If the account pays 6.85% interest compounded quarterly, and if Camille makes no new deposits or withdrawals from the account, how much money will be available for her child at the end of 18 years?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! camille receives an inheritance of $35,000(after taxes). she decides to invest all of it in an education account for her month-old daughter. If the account pays 6.85% interest compounded quarterly, and if Camille makes no new deposits or withdrawals from the account, how much money will be available for her child at the end of 18 years?
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A(18) = 35000(1+(0.0685/4))^(4*18)
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= 35000(1.0.17125)^(72)
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= 35000*3.395875
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= $118,855.62
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Cheers,
Stan H.
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