Question

Brief Exercise A-5 Andrew and Emma Garfield invested $6,000 in a savings account paying 4% annual interest when their daughter, Angela, was born. They also deposited $1,000 on each of her birthdays until she was 18 (including her 18th birthday). Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much was in the savings account on her 18th birthday (after the last deposit)? (Round answer to 2 decimal places, e.g. 25.25.) Amount on 18th birthday $

Answer 1

Birthday	Beginning Balance		Interest Earned		Additional Deposit			Ending Balance
	a		b=a*4%		c			d=a+b+c
0	0		0		$   6,000.00			$ 6,000.00
1	$   6,000.00		240.00		1,000.00			7,240.00
2	$   7,240.00		289.60		1,000.00			8,529.60
3	$   8,529.60		341.18		1,000.00			9,870.78
4	$   9,870.78		394.83		1,000.00			11,265.62
5	$ 11,265.62		450.62		1,000.00			12,716.24
6	$ 12,716.24		508.65		1,000.00			14,224.89
7	$ 14,224.89		569.00		1,000.00			15,793.89
8	$ 15,793.89		631.76		1,000.00			17,425.64
9	$ 17,425.64		697.03		1,000.00			19,122.67
10	$ 19,122.67		764.91		1,000.00			20,887.57
11	$ 20,887.57		835.50		1,000.00			22,723.08
12	$ 22,723.08		908.92		1,000.00			24,632.00
13	$ 24,632.00		985.28		1,000.00			26,617.28
14	$ 26,617.28		1,064.69		1,000.00			28,681.97
15	$ 28,681.97		1,147.28		1,000.00			30,829.25
16	$ 30,829.25		1,233.17		1,000.00			33,062.42
17	$ 33,062.42		1,322.50		1,000.00			35,384.92
18	$ 35,384.92		1,415.40		1,000.00			37,800.31
Thus,
	Amount on 18th birthday is				$ 37,800.31