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.
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?
1 answer