As a savings plan for college, when their son Bob was born, the Wilburs deposited $10,000 in an account paying 8% compounded annually. How much will the account be worth when Bob is 18 years old?

Answer 1

P = Po(1+r)^n

Po = $10,000

r = 8%/100% = 0.08 = APR expressed as a decimal.

n = 1comp/yr. * 18yrs. = 18 Compounding
periods.

Solve for P.