Question

Amanda's parents invested $10,000 into a savings account for her college fund when she was born. The savings plan compounds interest yearly at a rate of 3.75%. How much money will be in Amanda's college fund when she turns 18? Round your answer to the nearest cent.

A. $19,399.29
B. $19,149.68
C. $20,146.75
D. $20,652.19

Answer 1

A. $19.399.29

Explanation:

to be honestly, i don't know how to do this in my head or if there is any formulae to that, every year when interest adds to principal it would makes the principal more and there would be a new amount of interest, but there is a compound interest calculator on internet, i typed the number in and it tells me the answer.