Math word problem

Question

Grandparents of a newborn put $10,000 in a bank account earning 4% interest compounded annually as a college  fund. When the baby is 18 years old, how much money will be in the account?

Answer 1

the formula to answer this question is Future value = Principal x (1 + rate)^years



FV = $10,000 x (1.04)¹⁸

FV = $10,000 x 2.0258

FV ≅ $20,258