When Glenn was born, his parents invested $4,000 for his college education. At an interest rate of 4%, compounded annually, approximately how much would Glenn have at age 18?
Use the forumula A = P(1 + r)t, where P is the principal (the initial amount), r is the interest rate, and t is the time in years.
A) 8,100
B) 1,707,520
C) 288,000
D) 72,000
Use the forumula A = P(1 + r)t, where P is the principal (the initial amount), r is the interest rate, and t is the time in years.
A) 8,100
B) 1,707,520
C) 288,000
D) 72,000
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A = 4000*1.04^18 = $8,103.27
Answer A)
Answer A)
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A = P(1 + r)t
A = 4000(1 + .04)^18
A) 8,100
A = 4000(1 + .04)^18
A) 8,100