Concept explainers
To find: Final amount in parent`s account after 18 years, when interest is paid compounded monthly.
Answer to Problem 2P
Final amount after 18 years is $4489.
Explanation of Solution
Given information: Initial deposit is $2000 that pays 4.5% compounded monthly.
Formula used: Any final amount A showing growth, when interest is compounded is given by the formula,
where A is last amount, P is initial amount, r is rate of interest, n is periods of interest and t is time.
Calculation: Plug
Conclusion: So, total amount in saving account after 18 years will be $4489, when interest is compounded monthly.
Chapter 7 Solutions
High School Math 2015 Common Core Algebra 1 Student Edition Grade 8/9
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