A mother puts $10,000 into a special bank account on the date of birth of her first born. The account earns interest at a rate of 4%, and compounds 4 times per year. When the child turns 18, he receives the lump sum. How much will the child receive?
A.
$10,407.65
B.
$11,961.47
C.
$20,470.99
D.
$168,422.62

Question

A mother puts $10,000 into a special bank account on the date of birth of her first born. The account earns interest at a rate of 4%, and compounds 4 times per year. When the child turns 18, he receives the lump sum. How much will the child receive?
A.
$10,407.65
B.
$11,961.47
C.
$20,470.99
D.
$168,422.62

anonymous · Answer

@sreekar369 @suckerofmath @sikinder

anonymous · Answer

The answer is C.

tkhunny · Answer

Single Deposit
Single Interest Rate

i = 0.04
m = 4
j = i/m = 0.01
n = 18
n*m = 18*4 = 72

10000*(1 + 0.01)^{72} = ?