Angelina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 each quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year?

Question

Quizplus · Accepted Answer

Angelina will save for a total of 4 years x 4 quarters per year = 16 quarters.
Each quarter she will deposit $1,000, so the total amount of money she will deposit over the four years will be $1,000 x 16 = $16,000.
The bank account pays 12 percent interest, so at the end of the fourth year, Angelina will have earned 12% x $16,000 = $1,920 in interest.
Therefore, her total savings at the end of the four years will be $16,000 + $1,920 = $17,920.
The closest answer option is C) $20,157, which is not the exact amount but the most reasonable and closest option to the calculated amount.

Angelina Has Planned to Start Her College Education Four Years