If your parents deposited $15,000 into an account for you when you were born as part of a college savings fund and that account is earning 10% annually,how much will you have in your college savings fund on your 18^th birthday? A) $36,099.29 B) $83,398.76 C) $162,520.59 D) $50,795.32

Question

Quizplus · Accepted Answer

We can solve this problem using the compound interest formula: 
A = P(1 + r/n)^(nt), 
where A is the amount, P is the principal (initial deposit), r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the time in years.

In this case, P = $15,000, r = 0.1, n = 1 (Annual compounding), and t = 18. 
Plugging in these values, we get: 
A = $15,000(1 + 0.1/1)^(1*18) 
= $15,000(1.1)^18 
= $83,398.76

Therefore, the answer is B.

If Your Parents Deposited $15,000 into an Account for You