Question

A grandmother deposited $5,000 in an account that pays 5% per year compounded annually when her granddaughter was born. What will the value of the account be when the granddaughter reaches her 14th birthday?
a) $9,879.66
b) $9,869.66
c) $9,899.66
d) $9,929.66
e) $9,889.66
f) None of the above.

Answer 1

\($5,000\cdot 1.05^{14}\)?

Answer 2

What did you get?

Was there anything about that little formula that you could not have done on your own?

Let's see another one and show your work.

Answer 3

c) $9,899.66

Answer 4

Sweet. What else have you?