Question

You were given a $20,000 gift towards University education by your grandparents. How much will this be in 17 years if it is invested at 7% and compounded annually?

Answer 1

Answer:

$65,068.44

Step-by-step explanation:

A= 20000(1+ 0.07/4)^4(17)

A= 20000(1.0175)^68

A= 65,068.44

Answer 2

The total amount accrued, principal plus interest, from compound interest in an original principal of $20k at a rate of 7% per year compounded 1 time per year over 17 years is $63,176.30