Question

When Katie was born her mother invested $5000 in an account for her college savings. The interest rate is 3.5% compounded annually. To represent this, we can use the formula V = 5000(1 + r)t where r represents the interest rate and t represents the time in years. How much will Katie have in her account when she turns 18

Answer 1

9287.45

Remember to turn the rate into a decimal by moving the decimal place to the left twice. Also remember that t is an exponent.