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Licemer1 [7]
2 years ago
13

14-8711

Mathematics
1 answer:
Norma-Jean [14]2 years ago
8 0

Answer:

$4,208.5

Step-by-step explanation:

The simple interest rate of the college savings account, R = 5.5%

The amount with which the account was opened, P = $500

The amount added each month to her account = $50

The amount in her account after 4 years = Required

The interest on each added $50 is given as follows;

50  × 0.055/12 × (1 + 2 + 3 + ... + 47) = 50  × 0.055/12 × (47/2)(1 + 47) = 258.5

The total amount deposited = 500 + 50 × 47 = $2,850

The total interest = 500×0.55×4 + 50  × 0.055/12 × (47/2)(1 + 47) = 1,358.5

The amount in her account at the end of 4 years, <em>A</em>, is given as follows

A = $2,850 + $1,358.5 = $4,208.5

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