Question

In order to save for your child's college education, you want to save $200 every month for 15 years, starting one month from now. The monthly interest rate on your savings account is 0.6%.

Attempt 1/10 for 10 pts.
Part 1 How much money will you have in your account in 15 years?

Answer 1

To find out how much money you will have in your account after 15 years, you can use the formula for compound interest.

Step-by-step explanation:

To find out how much money you will have in your account after 15 years, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

• A is the future amount in the account
• P is the principal amount (the initial $200 you save every month)
• r is the annual interest rate (0.6%)
• n is the number of times that interest is compounded per year (12 months)
• t is the number of years (15 years)

Using these values, you can substitute them into the formula and calculate the future amount in your account. The final answer will depend on the compounding period (monthly, quarterly, etc.) specified by the bank.