Answer:
Suppose that a couple invested $50,000 in an account when their child was born, to prepare for the child's college education. If the average interest rate is 4.4% compounded annually, ( A ) Give an exponential model for the situation, and ( B ) Will the money be doubled by the time the child turns 18 years old?
( A ) First picture signifies the growth of money per year.
( B ) Yes, the money will be doubled as it's maturity would be $108,537.29.
a = p(1 + \frac{r}{n} ) {}^{nt}a=p(1+
n
r
)
nt
a = 50.000.00(1 + \frac{0.044}{1} ) {}^{(1)(18)}a=50.000.00(1+
1
0.044
)
(1)(18)
a = 50.000.00(1 + 0.044) {}^{(1)(18)}a=50.000.00(1+0.044)
(1)(18)
a = 50.000.00(1.044) {}^{(18)}a=50.000.00(1.044)
(18)
50,000.00 ( 2.17074583287910578440507440 it did not round off as the exact decimal is needed.
a = 108.537.29a=108.537.29
Step-by-step explanation:
Hope This Help you!!
