A newborn child receives a ​$6,000 gift toward a college education from her grandparents. How much will the ​$6,000 be worth in 19 years if it is invested at 6.5​% compounded​ quarterly? It will be worth $ ?

saucletbh

saucletbh

Answered question

2022-09-24

A newborn child receives a ​$6,000 gift toward a college education from her grandparents. How much will the ​$6,000 be worth in 19 years if it is invested at 6.5​% compounded​ quarterly? It will be worth $ ?

Answer & Explanation

Chiecrere2f

Chiecrere2f

Beginner2022-09-25Added 9 answers

Let P,r,y be the principal at beginning, rate of interest and years of investment respectively. Then
P = $ 6000 r = 6.5 % = 0.65 y = 19
Let A be ammount of 19 years. Then
A = P ( 1 + r k ) y k
when k=4 as compounded quaterly.
Putting the values in equation we have
A = 6000 ( 1 + 0.65 4 ) 19 × 4
Solving the equation, we have
A = $ 20426.488

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