Answer:
The Amount of money which they have for college Expenses after 10 years $6549.83
Step-by-step explanation:
Given as :
The amount which is invested per year = 300 × 12 = $3600
The interest rate which will apply = 6% annual
The time period = 10 years
Here the interest rate is compounded monthly
So, from Compound Interest method :
Amount = principal [tex](1 +\frac{Rate}{12 \times 100})^{12 \times Time}[/tex]
Amount = $3600 [tex](1 +\frac{6}{12 \times 100})^{12 \times 10}[/tex]
Amount = $3600 [tex](1.005)^{120}[/tex]
Or, Amount = $3600 × 1.8193 = $6549.8282
Now to the nearest hundred the Amount = $6549.83
The Amount of money which they have for college Expensive after 10 years $6549.83 Answer
