Question

How much money will they have?

Answer 1

$6549.83 is the total ! :)

Explanation:

Answer 2

The Amount of money which they have for college Expenses after 10 years $6549.83

Explanation:

Given as :

The amount which is invested per year = 300 × 12 = $3600

The interest rate which will apply = 6% annual

The time period = 10 years

Here the interest rate is compounded monthly

So, from Compound Interest method :

Amount = principal
`(1 +(Rate)/(12 * 100))^(12 * Time)`

Amount = $3600
`(1 +(6)/(12 * 100))^(12 * 10)`

Amount = $3600
`(1.005)^(120)`

Or, Amount = $3600 × 1.8193 = $6549.8282

Now to the nearest hundred the Amount = $6549.83

The Amount of money which they have for college Expensive after 10 years $6549.83 Answer