SOLUTION: At the time of her grandson’s birth, a grandmother deposits $2000 in an account that pays 2.5% compounded monthly. What will the value of the account be at the child’s twenty-first
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Question 526878: At the time of her grandson’s birth, a grandmother deposits $2000 in an account that pays 2.5% compounded monthly. What will the value of the account be at the child’s twenty-first birthday, assuming that no other deposits or withdrawals are made during this period? Answer by scott8148(6628) (Show Source):
You can put this solution on YOUR website! assuming 2.5% monthly (which seems kind of high) ___ A = 2000 (1 + .025)^(12 * 21)
for 2.5% annually ___ A = 2000 [1 + (.025 / 12)]^(12 * 21)
