Question

Charlene's parents deposit $500 in an account on the day she is born. The account earns a high interest rate of 9.2% compounded quarterly because Charlene is not allowed to access the money until her 22nd birthday. How much money will Charlene have on her 22nd birthday?

Answer 1

Answer:

about A+=+2000%281%2B+0.023%2F1%29%5E%281%2A18%29+=+2000%2A1.023%5E18= $3,011.56 thats my math

Step-by-step explanation:

Answer 2

Answer:

$3,698.50

Step-by-step explanation:

When making a compound interest rate this means that the interests generated are taken into consideration when creating new interests in the next period, now there are 4 quarterly periods on a year, this means there are 88 periods in the 22 years that the account will grow, you just have to do the math:

$A=P(1+\frac{r}{n})^{nt}$

Where n is the number of cycles per year and nt is the number of cycles over the years.

We just have to put the values into the formula:

$A=500(1+\frac{.092}{4})^{22*4}$

$A=500(1+\frac{.092}{4})^{88}$

$A= 3,698.50$