hectors parents deposited $20 each week into a college fund starting when he was born. The account earned 3% compound interest.
A) How much was in the account when he turned 18?
B) How much interest was earned?

Question

hectors parents deposited $20 each week into a college fund starting when he was born. The account earned 3% compound interest.
A) How much was in the account when he turned 18?
B) How much interest was earned?

anonymous · Answer

Could you show us what you've done please?

anonymous · Answer

Eveytime i use the formula i am way off. I am not sure what formula to use

e.mccormick · Answer

Savings plan formula is usually the one for that.  But you have to know when the compounding periiod is because that formula requires the added payments and compounding to be aon the same cycle.  So you may need to adjust the cycle t make them amtch, so if it was 3% monthy then do payments of 4*20 and see if that heps.

anonymous · Answer

The compounding period is not specified.

e.mccormick · Answer

That is problematic.

e.mccormick · Answer

Now, you have an answer or you would not be able to say you were way off.  Did you try the savings plan formula?

anonymous · Answer

i dont know what the savings formula is. There are so many i am confused as to which one to use.

e.mccormick · Answer

http://mupfc.marshall.edu/~schroederm/4c.pdf Page 2.

e.mccormick · Answer

Try that and see if it lands you where you need, is high, or low.  Each tells us something.

anonymous · Answer

ok give me a few

e.mccormick · Answer

Assume weekly periods, since that is all you have been given.

anonymous · Answer

ok

e.mccormick · Answer

I got $24812.31  at 18.

anonymous · Answer

i was no were near that so i am definitely doing something wrong in the calculations. I got 34.31 over 0.0003. Can you show me how you broke down the problem to get that answer so i can see where I am going wrong

e.mccormick · Answer

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