Principal amount (P) = $12000 Rate of interest (I) = 6.4% Time of deposit = 12 years Let us assume the final amount to be = A Then <span>A = P ( 1+r ) ^ t </span> = 12000 (1 + 0.064) ^12 = 12000(1.064)^12 = 12000 * 2.105 = 25260 dollars From the above deduction, it can be concluded that the account will have $25260, when Ann goes to college in 12 years.