Problema Solution
In order to help pay for college, the grandparents of a child invest $450 in a bond that pays 10.5% interest compounded quarterly. How much money will there be in 6 years?
Answer provided by our tutors
A = P(1+r)^n = 450*(1+10.5%/4)^24 = $838.09
So the money will be $838.09