Ask Question
26 August, 11:56

1. Cecilia's grandfather set up a savings account for her with a $25,000 gift when she was born. The account accumulated interest annually at a rate of 6% per year and no other deposits were made to the account. Cecilia is 21 years old today. To date, how much has accumulated in the account?

+2
Answers (1)
  1. 26 August, 12:22
    0
    The accumulated amount in the account = $84,989.09

    Explanation:

    The amount that has been accumulated in the account is the future value of 25,000 invested invested at 6% interest compounded annually.

    FV = PV * (1+r) ^n

    Future Value (FV) = ?, Present Value (PV) - 25,000, rate (r) - 6%, number of years (n) - 21

    FV = 25,000 * (1.06) ^21

    FV = $84,989.09

    The accumulated amount in the account = $84,989.09
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “1. Cecilia's grandfather set up a savings account for her with a $25,000 gift when she was born. The account accumulated interest annually ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers