Question

Oliver wants to invest $15,000 in an account that pays 4.5% per year. After 3 years, if he pulls out his money, will he have enough to pay for his son’s college tuition of $20,000?

Answer 1

No

Explanation:

`A=Pe^(rt)\\20000\stackrel{?}{\leq}15000e^(0.045(3))\\20000\\leq17168.05`

Therefore, Oliver will not be able to pay for his son's college tuition of $20,000 after 3 years. He'll be short by about $3000.