Question

When Theo was born his uncle put $1000 in a college savings account for him, at 4%

interest
- Develop a function to show the amount in the savings account after x years
- How much money will be in the account when Theo is 18 and ready for college?

Answer 1

A= P(1+r)^x

$2025

Explanation:

Given data

Principal= $1000

Rate= 4%

1. - Develop a function to show the amount in the savings account after x years

Time= x years

The function is

A= P(1+r)^x

2. How much money will be in the account when Theo is 18 and ready for college?

Time= 18 years

A= 1000(1+0.04)^18

A=1000(1.04)^18

A=1000*2.025

A=$2025