Question

Shandra's parents put $1,500 in her bank account for college tuition. At an interest rate

Answer 1

Answer:

$6,427.99

Step-by-step explanation:

-We first find the effective annual interest rate as follows:

$i_m=(1+i/m)^m-1\\\\=(1+0.0825/2)^2-1\\\\=0.084202$

#We the use this rate to find the compounded amount after 18 years:

$A=P(1+i_m)^n\\\\=1500(1.084202)^{18}\\\\=6427.99$

Hence, the amount after 18 years is $6,427.99