John and Mary Rich invested $15,000 in a savings account paying 5.25% interest at the time their son, Mike, was born. The money is to be used by Mike for his college education. On his 18th birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account?

The amount that Mike withdraws from his account is $37678.11265

Explanation:

This question requires to calculate the future value of the amount invested at a rate of 5.25% for 18 years. We will simply use the formula for future value.

The formula for future value is,

FV  = Present Value * (1+r)^t

Where,

r is the interest rate t is the time period Here the time period is in years and is 18 years or t = 18

FV = 15000 * (1+0.0525)^18

FV = $37678.11265

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.