Question

Investment Problems

Kerry and Mike just had a little baby boy and want to set up a college fund for him. They have $3000 to invest from their savings and they found a bank that would give them 4.5% interest.

How much would be in the fund when their son is 21, if the interest is compounded quarterly? Investment Problems

Kerry and Mike just had a little baby boy and want to set up a college fund for him. They have $3000 to invest from their savings and they found a bank that would give them 4.5% interest.

How much would be in the fund when their son is 21, if the interest is compounded quarterly? @Mathematics

Answer 1

help!!!

Answer 2

4.5%=0.045
Calculating annual rate: \[(0.045/4+1)^{4}=1.045765\]
Solving for 21 years: \[3000 * 1.045765^{21} = 7677.82\]

Answer 3

Thank u Fernando : )!!!!!