Answer: The approximate amount of money in James' account when he turns 18 years old is approximately $8,749.00.
Explanation:
To calculate the approximate amount of money in James' account when he turns 18 years old, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money in the account
P = the initial principal (deposit) amount
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, Mrs. Ryan initially deposited $5,000 into the account, the interest rate is 4% (or 0.04 as a decimal), and the interest is compounded annually (n = 1). The time period is 15 years since James turns 18 and the initial deposit was made when he was 3 (18 - 3 = 15).
Plugging the values into the formula:
A = 5000(1 + 0.04/1)^(1*15)
A = 5000(1.04)^15
A ≈ 5000(1.7498)
A ≈ $8,749.00
Thereforec