Samkelo and Amara will only be able to invest money for 10 years just before Zuberi is called to serve as a missionary at age 18. They find an investment firm that will provide a 4% return on their money.  They are able to invest $50/month. How much will they have in their account when Zuberi is 18 years old?

This problem involves calculating the future value of a series of monthly investments (also known as an annuity). Given that Samkelo and Amara will invest $50 per month for 10 years at an annual interest rate of 4%, we can use the **Future Value of an Annuity** formula to find the amount in their account when Zuberi is 18 years old.

The formula for the future value of an annuity is:

\[
FV = P \times \frac{(1 + r)^n - 1}{r}
\]

Where:
- $FV$ = future value of the investment
- $P$ = monthly investment ($50)
- $r$ = monthly interest rate (annual rate / 12)
- $n$ = total number of payments (years $\times$ 12)

### Step-by-step breakdown:

1. **Monthly Interest Rate**: 
   \[
   r = \frac{4\%}{12} = \frac{0.04}{12} = 0.00333
   \]

2. **Total Number of Payments**:
   \[
   n = 10 \times 12 = 120 \text{ months}
   \]

3. **Substitute into the Formula**:
   \[
   FV = 50 \times \frac{(1 + 0.00333)^{120} - 1}{0.00333}
   \]

I'll calculate this.The future value of Samkelo and Amara's investment will be approximately **$7,362.49** after 10 years when Zuberi turns 18.

Would you like further details or have any questions? 

Here are some related questions you might find interesting:

1. What would happen if the interest rate changed to 5%?
2. How would the total change if they increased their investment to $100 per month?
3. What if the investment period was 15 years instead of 10?
4. How much interest will they earn compared to their total contributions?
5. How does compounding frequency (monthly vs yearly) impact the total?

**Tip**: Investing earlier and for longer periods can significantly increase your future savings due to the power of compound interest!

Samkelo and Amara will only be able to invest money for 10 years just before Zuberi is called to serve as a missionary at age 18. They find an investment firm that will provide a 4% return on their money. They are able to invest $50/month. How much will they have in their account when Zuberi is 18 years old?

Discover how to calculate the future value of a monthly investment of $50 over 10 years at a 4% interest rate. Learn about annuities, compound interest, and how these concepts affect long-term investments. This detailed solution is suitable for high school students, Grades 10-12.

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