Your grandparents give you $1000 for your tenth birthday to invest for your college education. You research some investment companies around town and find one that pays you 4.2% and compounds quarterly. If you leave the money in your account until your 18th birthday, how much money will you have? Show all your work.

$ 13,968.90

Step-by-step explanation:

You are given the money at 10 years oldInvest it until you're 18, so that's 8 yearsThis is compound interest, so use the formula: A is the total amount with interestP is the principal or starting amount 10000 dollarsr is the rate (percentage): 4.2%, use the decimal form in the equationn is the number of times you are compounding; in this case, it is compounded quarterly. Quarterly means every quarter of a year or 3 months, so it is compounded 4 times a year, n is 4t is the time, so that's 8 years