Question

At the time of her​ grandson's birth, a grandmother deposits $ 2000 in an account that pays 3.5 % compounded monthly. What will be the value of the account at the​ child's twenty-first​ birthday, assuming that no other deposits or withdrawals are made during this​ period?

The value of the account will be ​=
​(Round to the nearest dollar as​ needed.)

Answer 1

At the time of her grandson's birth, a grandmother deposits $12,000.00 in an account that pays 2% compound monthly. What will be that value of the account at the child's twenty-first birthday, assuming that no other deposits or withdrawls are made during the period.
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A(t) = P(1+(r/n))^(nt)
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A(21) = 12000(1+(0.02/12))^(12*21)
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A(21) = 12000(1.5214)
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A(21) = #18,257.15

Answer 2

The value of the account will be $4166.85.

Explanation:

p = 2000

r = 3.5% or 0.035

t = 21

n = 12

Compound interest formula is :

`A=p(1+(r)/(n))^(nt)`

Now putting the values in the formula we get;

`A=2000(1+(0.035)/(12))^(12*21)`

=>
`2000(1.002917)^(252)`

Amount = $4166.85

Hence, The value of the account will be ​= $4166.85