1. Jefferson and Rio Morales are trying to decide on an account to help save for college for their newborn son Miles. Forest Hills Bank is offering a college savings account that has a promotional 4% interest compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much will be in the account in 18 years? 2. Miles' uncle Aaron Davis (Jefferson's brother) is out on the prowl one night and sees an ad for another bank offering a special college savings account, which he tells Jefferson and Rio about. If you commit to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest compounded monthly. How much would they have at the end of 18 years with this account? Is this a better option? Why or why not?

1. Jefferson and Rio Morales are trying to decide on an account to help save for college for their newborn son Miles. Forest Hills Bank is offering a college savings account that has a promotional 4% interest compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much will be in the account in 18 years? 2. Miles' uncle Aaron Davis (Jefferson's brother) is out on the prowl one night and sees an ad for another bank offering a special college savings account, which he tells Jefferson and Rio about. If you commit to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest compounded monthly. How much would they have at the end of 18 years with this account? Is this a better option? Why or why not?

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...

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