Quantitative Reasoning

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  • PE2.11
  • April 9, 2015 at 1:29 pm #30086

    Ezra Halleck
    Participant

    11) In order to help pay for college, the grandparents of a child invest $2650 in a bond that pays 12% interest compounded monthly. How much money will there be in 2.5 years?

    May 6, 2015 at 12:23 pm #30477

    CCBassT87
    Participant

    A=P(1+r/n)^nt.
    $2650 (1+.12/12)^12×30 aka 2.5 years
    $2650 (0.01) ^360
    $2650 (3.6)
    In 2.5 years $9540 will be in the bond account.

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