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In order to pay for college, the parents of a child invest $25,000 in a bond that pays 6% interest compounded semiannually. How much money will there be in 18 years? Round your answer to the nearest cent. In 18 years the bond will be worth . X 5

In order to pay for college, the parents of a child invest $25,000 in a bond that pays 6% interest compounded semiannually. How much money will there be in 18 years? Round your answer to the nearest cent. In 18 years the bond will be worth . X 5

Advanced Engineering Mathematics
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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The image shows a math exercise on a computer screen related to calculating compound interest. Here's the transcription and explanation: --- **Compound Interest Exercise:** In order to pay for college, the parents of a child invest $25,000 in a bond that pays 6% interest compounded semiannually. How much money will there be in 18 years? Round your answer to the nearest cent. **Input Section:** "In 18 years the bond will be worth" [Input box] X [Input box] 5 --- The task requires using the formula for compound interest: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount ($25,000). - \( r \) is the annual interest rate (6% or 0.06). - \( n \) is the number of times that interest is compounded per year (2 for semiannual). - \( t \) is the time the money is invested for in years (18). The exercise asks you to calculate the final amount and input it into the given field on the educational interface.
Transcribed Image Text:The image shows a math exercise on a computer screen related to calculating compound interest. Here's the transcription and explanation: --- **Compound Interest Exercise:** In order to pay for college, the parents of a child invest $25,000 in a bond that pays 6% interest compounded semiannually. How much money will there be in 18 years? Round your answer to the nearest cent. **Input Section:** "In 18 years the bond will be worth" [Input box] X [Input box] 5 --- The task requires using the formula for compound interest: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount ($25,000). - \( r \) is the annual interest rate (6% or 0.06). - \( n \) is the number of times that interest is compounded per year (2 for semiannual). - \( t \) is the time the money is invested for in years (18). The exercise asks you to calculate the final amount and input it into the given field on the educational interface.
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