Question

A mother puts $10,000 into a special bank account on the date of birth of her first born. The account earns interest at a rate of 4%, and compounds 4 times per year. When the child turns 18, he receives the lump sum. How much will the child receive?

Answer 1

Principal amount p=10000
A=10000(1+1/100)∧72
  =10000×2.0470991

The child will receive $20479.9