Since your birth , your grandparents have been depositing $ 100 into a savings account every month. The account pays 9 % interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to:

Future Value = $53,635.17

Explanation:

Giving the following information:

Since your birth , your grandparents have been depositing $ 100 into a savings account every month. The account pays 9 % interest annually.

First, we need to calculate the monthly interest rate:

Real interest rate = 0.09/12 = 0.0075

Now, using the following formula, we can calculate the future value:

FV = {A*[ (1+i) ^n-1]}/i

A = monthly deposit = 100

n = 18*12 = 216

i = 0.0075

FV = {100*[ (1.0075^216) - 1]}/0.0075

FV = $53,635.17