A grandmother is looking for a plan to finance her new grandchild’s college education. She has $25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is to earn compound interest.

Question

Calculate the future value of the investment. You must use the advertised interest rate, the number of compounding periods per year, and the time the funds will be invested. If you are not given the number of compounding periods a year, make it up.

p=25,000(1+0.0177/1)1*8
p=25000
rate=0.0177
n=1
time=8 years
i need step by step help

p=25,000(1+0.0177/1)1*8
p=25000
rate=0.0177
n=1
time=8 years
i need step by step help

Reiny · Answer

I don't see what the problem is Just evaluate it P = 25000(1.0177)^8 = 25000(1.150689622) = 28767.24

Anonymous · Answer

model the future value of grandmas investment as an exponential function,with time as the independent varible:f(t)=p(1+r/n)nt

ruby · Answer

A grandmother is looking for a plan to finance her new grandchild’s college education. She has $50,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is to earn compound interest