Question

To save for her newborn son's college education, kelli peterson will invest $1,500 at the end of each year for the next 18 years. the interest rate she expects to earn on her investment is 9%. how much money will she have saved by the time her son turns 18? seen by tomoe kaneko at 7:04pm

Answer 1

9% of $1500 is $15 so she gains an extra $15 for each of the 18 years

$1500 in the bank each year for 18 years is $27000 after 18 years

$15 each year as well so that’s an extra $270 in the bank

The total in the bank is the sum of what she has invested and the interest so the total in the bank is $27270