Bus Econ 5.3.43 Gilberto opened a savings account for his daughter and deposited
ID: 1145372 • Letter: B
Question
Bus Econ 5.3.43 Gilberto opened a savings account for his daughter and deposited $900 on the day she was born. Each her birthday, he deposited another $900. If the account pays 7% interest, compounded annually, how much is in the account at the end of the day on her 13th birthday? Question Help * At the end of the day on her 13th birthday, the amount in year on enaly, the account is s much is in Round to the near (Simplify your answer. Type an integer or a decimal. Round to the nearest cent if needed.)Explanation / Answer
Formula, S = R*(((1+i)^n ) - 1)/i)
Where S= future value of n payments of R dollars for n periods at a rate of i per period
On her 13th birthday the money after 13 years = 900*((((1+0.07)^13)-1)/0.07) = 900*20.14=$18126.58
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