Question

Taylor's father deposited 1,000 into a savings account when she was born. The annual interest rate is 4.5%. Since opening the account, Taylor's family never deposited or withdrawn money from it.

Answer 1

Note we assumed a time of 9 years

$1486

Explanation:

Given data

Let us say Taylor's present age is 9 years

We can calculate the amount in the savings account when Taylor is 9 years as

A= P(1+r)^t

P=1000

r= 4.5%

t=9

substitute

A=1000(1+0.045)^9

A= 1000(1.045)^9

A= 1000*1.486

A= $1486

Hence at age 9 the amount will be $1486