When Greg was born, his grandmother put $5000 in a savings account for his college expenses. It was compounded at 2.5 percent semiannually, and left in the account 18 years. How much was in the account? Round to the nearest dollar.

Question

Mathematics

Mathew Fleming

11 August, 20:51

When Greg was born, his grandmother put $5000 in a savings account for his college expenses. It was compounded at 2.5 percent semiannually, and left in the account 18 years. How much was in the account? Round to the nearest dollar.

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Answers (1)

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Justice Tran · Answer 1

The amount of Greg's amount after 18 years will be:

FV=P (1+r/100*n) ^n*t

where

FV=futere valyue

P=principle

r=rate

n=number of temrs

t=time

substituting the values in the formula we get:

FV=5000 (1+2.5 / (2*100)) ^ (18*2)

FV=$7819.72

amount after 18 years will $7819.72