Question

When marcus started school at 5 years old, his parents put $9,050 into a college fund account that earned 7.5% interest. what is the total amount in the account when he starts college at 18 years old?

Answer 1

Total tiime = 18 - 5 = 13 years

Initial money = $9050

Interest rate = 7.5%

I = C* i * t

C = Co(1 + n*i)

C = 9050[(1 + (13*0.075)]

C = 9050[1 + (0.975)]

C = 9050[1.0975]

C = $17873.75

When Marcus be 18 years ols there will be $17873.75.