1. Jefferson and Rio Morales are trying to decide on an account to help save for college for their newborn son Miles. Forest Hills Bank is offering a college savings account that has a promotional 4% interest compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much will be in the account in 18 years? 2. Miles' uncle Aaron Davis (Jefferson's brother) is out on the prowl one night and sees an ad for another bank offering a special college savings account, which he tells Jefferson and Rio about. If you commit to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest compounded monthly. How much would they have at the end of 18 years with this account? Is this a better option? Why or why not?
1. Jefferson and Rio Morales are trying to decide on an account to help save for college for their newborn son Miles. Forest Hills Bank is offering a college savings account that has a promotional 4% interest compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much will be in the account in 18 years? 2. Miles' uncle Aaron Davis (Jefferson's brother) is out on the prowl one night and sees an ad for another bank offering a special college savings account, which he tells Jefferson and Rio about. If you commit to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest compounded monthly. How much would they have at the end of 18 years with this account? Is this a better option? Why or why not?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Nk
-Nk
(1+ E)'
[1- (1+E)
(E)
Nk
A = P,(1+ rt) PN = P. (1+)*
PN =d
Po = d
1. Jefferson and Rio Morales are trying to decide on an account to help save for college for their newborn
son Miles. Forest Hills Bank is offering a college savings account that has a promotional 4% interest
compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much
will be in the account in 18 years?
2. Miles' uncle Aaron Davis (Jefferson's brother) is out on the prowl one night and sees an ad for another
bank offering a special college savings account, which he tells Jefferson and Rio about. If you commit
to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest
compounded monthly. How much would they have at the end of 18 years with this account? Is this a
better option? Why or why not?
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