Question

At his son's birth, a man invested $2,000 in savings at 6% for his son's college education. Approximately how much, to the nearest dollar, will be available in 19 years?

Answer 1

a)
6051.20
6617.17

b)
11.89566105 years
11.00673904 yearsReport · 16/11/2016

Answer 2

The amount that will be available n 19 years in bank account will be $6,051.

Explanation:

Given : A man invested $2,000 in savings at 6%.

We have to find the amount that will be available in 19 years in bank account.

Using Formula for Compound interest,

`A=P(1+(r)/(100))^n`

Where, A is amount

P is principal value

r is rate of interest

t is time period.

Consider a man invested $2,000 in savings at 6% for 19 years.

Here, P = 2000

r = 6%

t = 19 years

`A=2000(1+(6)/(100))^(19)`

On simplifying, we have,

`A=6051.19`

Thus, the amount that will be available n 19 years in bank account will be $6,051.