Question

Kelly's parents plan to put money into an account and leave it there for 16 years before she goes to college. If they put $1000 into an account that earns 3.75% interest how much will be in Kelly's account when it is time for her to go to college?

Answer 1

$z = k \times (1 + \frac{p}{100} ) {}^{n}$
in this case

$z = 1000 \times (1 + \frac{3.75}{100} ) {}^{16} \\ \\ = 1802.23$