Question

At the time of a child's birth, $10,000 was deposited in an account paying 5% interest compounded semiannually. what will be the value of the account at the child's twenty-first birthday?

Answer 1

The amount of the account, A, after 21 years will be:

`A=10,000(1.025)^(42)=28,209.95`
The answer is $28,209.95.