MATH SOLVE

3 months ago

Q:
# On the day their child was born, her parents deposited $25,000 in a savings account that earns 12% interest annually. how much is in the account the day the child turns 16 years old (rounded to the nearest cent)? hint: an = a1(1 + r)n, r ≠ 1, where a1 is the initial amount deposited and r is the common ratio or interest rate. $136,839.14 $153,259.84 $85,613.50 $448,000.00

Accepted Solution

A:

Value #0 = 25,000 (1 + .12)⁰ = $25,000

Value #1 = 25,000 (1 + .12)¹

Value #2 = 25,000 (1 + .12)²

Value #3 = 25,000 (1 + .12)³

.

.

.

Value #16 = 25,000 (1 + .12)¹⁶ = 25,000 (6.1304) = $153,259.84

I think it was Albert Einstein who was purported to have said that

"Mankind's greatest invention of all time has been compound interest.".

Value #0 = 25,000 (1 + .12)⁰ = $25,000

Value #1 = 25,000 (1 + .12)¹

Value #2 = 25,000 (1 + .12)²

Value #3 = 25,000 (1 + .12)³

.

.

.

Value #16 = 25,000 (1 + .12)¹⁶ = 25,000 (6.1304) = $153,259.84

I think it was Albert Einstein who was purported to have said that

"Mankind's greatest invention of all time has been compound interest.".