Question

Lucy's mom started a 529 college fund for her when she was 4 years old inorder to save money for college. She put $9,000 into an account that earnsa 5% compounded annually. Lucy wants to know how much money she willhave when she is 18. Look at her work below.Is her solution correct? If not, describe the mistake(s) in her work.y = 900011+ 9(e)y = 9000 (1.5) 18y = 8133010 26.92

Answer 1

Step-by-step explanation:

P = $9000

i = 5% 0.05

We nee to apply the formula:

`\begin{gathered} (FV)/((i+i)^n)=\text{ PV} \\ FV\text{ = }PV\text{ }(1+i)^n \\ FV=9000(1+0.05)^(18)\text{ } \end{gathered}`