Question

Since your birth​, your grandparents have been depositing $ 110 into a savings account every month. The account pays 12​% interest annually. Immediately after your grandparents make the deposit on your 18th​ birthday, the amount of money in your savings account will be closest​ to:

Answer 1

FV= $83,365

Step-by-step explanation:

Giving the following information:

Since your birth​, your grandparents have been depositing $ 110 into a savings account every month. The account pays 12​% interest annually.

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit=110

n= 12*18=216

i=0.12/12=0.01

FV= {110*[(1.01^216)-1]}/0.01= $83,365