On the day a person is born, a deposit of $10,000 is made in a trust fund that pays 5% interest, compound quarterly. Find the balance on the person's 18th birthday.

Given:

Amount deposited on birth = $10,000.

Interest rate = 5% compound quarterly.

To find:

The balance on the person's 18th birthday.

Solution:

The formula for amount is

where, P is principal, r is rate of interest, n is number of times interest compounded in an year and t is number of years.

Substitute P=10000, r=0.05, n=4, t=18 in the above formula.

Therefore, the balance on the person's 18th birthday is $24459.20.

560

step-by-step explanation:

giggidy

if x = 1, then the answer is 3.5