Question

At the time of her​ grandson's birth, a grandmother deposits $ 1000 in an account that pays 7 % 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

about $4,330.70

Step-by-step explanation:

I may be wrong but the equation should be...

`A_(n)= 1000(1+(0.07)/(12))^(12(21))`

The first number is the original amount. Inside you add 1 plus the decimal version of the percentage which is 0.07. You divide that by 12 which is what compounded monthly means! Than you bring that to the power of 12(compounded monthly) times the years it's been. In this case, 21 years. Then substitute that equation into a calculator and you should find the correct answer.