Question

1. Callie's grandmother deposits $1,000 into a savings account on Callie's 10th birthday

for her to withdraw when she turns 21. The account carries a 2.5% annual interest

rate that compounds quarterly.

If no additional deposits are made the account, by how much will the money grow by

the time Callie turns 21?

you

Answer 1

P= 1000
R=(2.5/4)%
Because it’s only when she turns 21
Which she only completed 20 yr
T=10
CI=1000(1.00625)^10-1000
Approximately
283.03/-