Since your first birthday, your grandparents have been depositing $1000 into a savings account on every one of your birthdays. The account pays 4% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to:

Question

Quizplus · Accepted Answer

The correct answer is A because the amount of money in the savings account will be closest to $25,645. This is because the grandparents have been depositing $1000 into the account every year for 18 years, and the account has been earning 4% interest annually. The total amount of money that the grandparents have deposited into the account is $18,000. The total amount of interest that the account has earned is $7,645. The total amount of money in the account is $25,645.

Since Your First Birthday, Your Grandparents Have Been Depositing $1000