As a savings plan for college, when their son Bob was born, the Wilburs deposited $10,000 in an account paying 9% compounded annually. How much will the account be worth (in $) when Bob is 18 years old? (Use Table 11-1.)
$

To find the future value of the account after 18 years, we use the compound interest formula:

\[
A = P(1 + r)^t
\]

Where:
- $ A $ is the amount in the account after $ t $ years.
- $ P $ is the principal amount (initial deposit), which is $10,000.
- $ r $ is the annual interest rate (9% = 0.09).
- $ t $ is the time in years (18 years).

Now, substituting the values:

\[
A = 10,000(1 + 0.09)^{18}
\]
\[
A = 10,000(1.09)^{18}
\]

Let me calculate that for you.The account will be worth approximately \$47,171.20 when Bob is 18 years old.

Would you like further details or have any questions about this calculation?

Here are 5 related questions you might be interested in:
1. How does compounding frequency affect the final amount?
2. What if the interest rate were compounded monthly instead of annually?
3. How would the final value change with a different interest rate?
4. How long would it take to double the investment at 9% compounded annually?
5. What would happen if the initial deposit were higher?

**Tip:** The effect of compound interest grows significantly with time, so starting early in a savings plan is key to maximizing returns!

As a savings plan for college, when their son Bob was born, the Wilburs deposited $10,000 in an account paying 9% compounded annually. How much will the account be worth (in $) when Bob is 18 years old?

Discover how to calculate the future value of $10,000 invested at 9% annual compound interest over 18 years. This detailed example explains the compound interest formula, key algebraic concepts, and exponential growth. Suitable for high school students in Grades 10-12.

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