Question

n 2013 Staci invested $14,000 in a savings account for her newborn son. The account pays 4.1% interest each year. Determine the accrued value of the account in the year 2031, when her son will go to college. Round your answer the nearest cent.In the year 2031, the accrued value will be $?

Answer 1

Given that,

In 2013 Staci invested $14,000 in a savings account for her newborn son.

The account pays 4.1% interest each year

To determine the accrued value of the account in the year 2031, when her son will go to college

To find the accrued value in the year 2031 in dollars.

we use the formula,

`A=P(1+(r)/(100))^n`

A is the final amount, P is the principal and r is the rate of interest.

Here, n=18

we get,

`A=14000(1+(4.1)/(100))^(18)`
`A=14000(1.041)^(18)`
`A=14000(2.06116)`
`A=28856.33`

Required amount is $28856.33.