Question

Michael's parents think he is the smartest baby ever born. They decide to place $18,000 into a college fund account for him when he is born. They are receiving a 4% interest compounded quarterly. At the end of 18 years, how much money will Michael have in his college account?

Answer 1

amount = 18000(1 + .04/4)^(4*18)
= 18000(1.01)^72
= ...