A newborn child receives a $5,000 gift toward a college education from her grandparents. How much will the $5,000 be worth in 18 years if it is invested at 7.5% compounded quarterly? It will be worth $ . (Round to the nearest cent.)
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P = the principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years In this case, P = $5,000, r = 7.5% or 0.075 (in decimal), n = 4 Show more…
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A newborn child receives a ONE TIME $8,000 gift toward a college education from her grandparents. How much will the $8,000 be worth in 18 years if it is invested at 5.5% compounded quarterly? Round your answer to the nearest cent. Do not include any symbols. Example: 56789.12
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