Question

Aundreys mother has decided to start a college savings account for him. aundrey is about to start kindergarten, and she decides to deposit $1000 in to an account with a 1.3% annual interest rate. How much will be in the account when aundrey starts 4th grade (4 years later) if she makes no deposits or withdrawals and the interest is compounded annually?

a) $27,984.10
b) $1,630.47
c) $1,053.02
d) $949.01

Answer 1

C

Explanation:

1.3% of 1000 is 13, 13 X 4 ≈ 53