Question

At the time of her grandson's birth, a grandmother deposits $14,000 in an account that pays 4.5% 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?
i Click the icon to view some finance formulas.
The value of the account will be $
(Round to the nearest dollar as needed.)
4

Answer 1

The value of the account will be $5,628

Explanation:

Explanation:

we know that

The compound interest formula is equal to

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

substitute in the formula above

therefore

The value of the account will be $5,628