Question

At the time of her​ grandson's birth, a grandmother deposits $2000 in an account that pays 6.5% compounded monthly. What will be the value of the account at the​ child's twenty-first​ birthday, assuming that no other deposits or withdrawals are made during this​ period?

Answer 1

$41, 863. 50

Explanation:

$2000 - 6.5% = $1,993.50

$1,993.50 x 21 = $41, 863. 50