Question

Manert’s grandfather put $4100 in the bank for him when he was born. The account has been

earning 6.5% interest compounded annually. Manert is now 25 years old and wants to take out the
money so he can go to college. How much money does he have now?

Answer 1

19793.57

Explanation:

The formula is

A = P(1+r)^t

---

now we fill it in.

A = 4100(1+0.065)^25

A = 4100(1.065)^25

A = 4100(4.83)

A = 19793.57

Answer 2

$19,793.57

Explanation:

The compound interest formula tells you the balance is ...

A = P(1 +r)^t . . . . principal P earning rate r compounded annually for t years

A = $4100(1.065^25) ≈ $19,793.57

Manert has $19,793.57 now.