In 2014 Staci invested $14,000 in a savings account for her newborn son. The account pays 4.7% interest each year. Determine the accrued value of the account in the year 2032, when her son will go to college. Round your answer the nearest cent.

In the year 2032, the accrued value will be $x

In the year 2032, the accrued value of the account will be **$32,001.35**.

Would you like additional clarification or details?

Here are some related questions:
1. What would the value be in 2030, two years earlier?
2. How much interest was earned over the 18 years?
3. What would the value be if the interest rate was 5%?
4. How would the value change if the time period was 20 years?
5. What would the final value be if interest compounded quarterly instead of yearly?

**Tip:** Using a compound interest calculator can help visualize how savings grow over time!

In 2014 Staci invested $14,000 in a savings account for her newborn son. The account pays 4.7% interest each year. Determine the accrued value of the account in the year 2032, when her son will go to college. Round your answer the nearest cent.

Learn how to calculate the accrued value of a $14,000 investment with a 4.7% interest rate over 18 years. Using the compound interest formula A = P(1 + r/n)^(nt), we determine the total amount in 2032 to be $32,001.35. This problem introduces core financial concepts and is ideal for students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation