Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a 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

There are 4 years * 4 quarters = 16 quarters in total.
She saves $1,000 per quarter, so in total, she saves $1,000 * 16 = $16,000.
The interest rate is 12%, so at the end of the fourth year, she will have:
$16,000 * 1.12^4 = $20,157.12
Therefore, the best choice is (C), $20,157.

Gina Has Planned to Start Her College Education Four Years